Problem 1
If the market demand curve is \(D(p)=100-.5 p,\) what is the inverse demand curve?
Problem 2
An addict's demand function for a drug may be very inelastic, but the market demand function might be quite elastic. How can this be?
Problem 4
Suppose that the demand curve for a good is given by \(D(p)=100 / p\) What price will maximize revenue?
Problem 5
True or false? In a two good model if one good is an inferior good the other good must be a luxury good.
