Suppose that the demand for good x is given by the equation Qx = 1,000 −...

Question

Question

Suppose that the demand for good x is given by the equation

Qx = 1,000 − 10Px.

(a) Derive an equation for the inverse demand function, px(x).

(b) Find the price and quantity combination that maximizes total revenue.

(c) Calculate the price elasticity of demand for the price-quantity combination you found in part (b).

Answer 1

Answer #1

Answer 2

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