Question

The demand curve for product X is given by QXᵈ = 520 - 4PX.

a. Find the inverse demand curve.
PX = - QXᵈ

Answer 1

To find the inverse demand curve for product X from the demand equation QXᵇ = 520 - 4PX, solve for PX to get PX = (520 - QXᵇ) / 4.

Step-by-step explanation:

The student has asked to find the inverse demand curve for the product X, given the demand equation QXᵇ = 520 - 4PX.

The inverse demand curve is found by solving for PX in terms of QXᵇ.

To find the inverse, we first add 4PX to both sides of the equation and then subtract QXᵇ from both sides to get 4PX = 520 - QXᵇ.

Finally, divide both sides by 4 to solve for PX, yielding the inverse demand curve: PX = (520 - QXᵇ) / 4.