Let the demand function for a product be Q = 100 ? 2P. The inverse demand function of this demand function is:
A. P = 50 ? 0.5Q.
B. P = 50 + 0.5Q.
C. Q = 100 + 2P.
D. None of the answers is correct.
Answer: A
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An import is any good that is:
A) produced and consumed domestically. B) priced through an auction mechanism. C) produced abroad, but sold domestically. D) rationed and licensed by the government.
If workers and firms know that the Federal Reserve is following an expansionary monetary policy, workers and firms will expect inflation to ________ and will adjust wages so that the real wage ________
A) decrease; decreases B) increase; remains unchanged C) increase; increases D) increase; decreases
The index that the U.S. government currently uses to determine whether a merger should be allowed is the
a. Herfindahl index b. Schumpeter index c. Dow Jones average index d. consumer price index e. four-firm concentration ratio
Which of the following is not correct?
a. Antitrust laws may prevent mergers that would actually raise social welfare. b. Public ownership is the most common public policy toward monopolies in the United States. c. Regulation is a common strategy for a natural monopoly. d. Sometimes the best public policy toward a monopoly may be to do nothing.