Final Answer:
Assessing the price elasticity of the inverse demand curve involves gauging the responsiveness of quantity demanded to price changes through graphing and analyzing its steepness and slope.
d) Assess the price elasticity of the inverse demand curve.
Step-by-step explanation:
Assessing the price elasticity of the inverse demand curve involves understanding how responsive the quantity demanded is to changes in price. By graphing the inverse demand curve for the given range of quantities and incorporating two points, one can analyze the curve's steepness. (d)
A steeper curve indicates lower price elasticity (inelastic demand), suggesting that changes in price have a smaller impact on quantity demanded. Conversely, a flatter curve signifies higher elasticity (elastic demand), where price changes significantly affect the quantity demanded.
Understanding this elasticity helps in pricing strategies, forecasting market behavior, and comprehending consumer responsiveness to price adjustments.
Here is complete question;
"Using the tool provided 'd,' graph the inverse demand curve for the given range of quantity (qx) from 0 to 6,000, incorporating two points on the curve.
a) Analyze the impact on supply and demand
b) Apply fundamental principles of economics
c) Evaluate market equilibrium based on the graph
d) Assess the price elasticity of the inverse demand curve"