Homework Answers
The graph drawn is correct. The vertical intercept is P = 4 and horizontal intercept is 4/0.0025 = 1600.
Slope of the demand curve is = Change in vertical axis / Change in horizontal axis = (0.00 - 4.00) / (1600 - 0)
= -0.0025.
Hence the slope is -0.0025.
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Suppose an inverse demand curve has the following
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