Given a linear demand function of the form QXd = 500 - 2PX - 3PY + 0.01M, find the inverse linear demand function assuming M = 20,000 and PY = 10.
A. PX = 500 - 2QX - 3PY + 0.01M.
B. PX = 335 - 0.5QX.
C. PX = 500 - 2QX.
D. PX = 335 - 2QX.
Answer: B
You might also like to view...
Inflation ________ the cost of holding money and ________ the after-tax real interest rate
A) decreases; increases B) increases; decreases C) increases; increases D) decreases; decreases E) increases; does not change
Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities
When the Fed conducts expansionary monetary policy, it __________ in the short run, but __________ in the long run.
A. boosts demand; causes inflation B. causes inflation; boosts output C. causes inflation; boosts economic growth D. boosts demand; boosts supply
The extent of discrimination is
A. measured by the differences in incomes. B. the reason for two-thirds of the income differential between black male workers and white male workers. C. difficult to quantify and controversial. D. easily measured for each category of workers.