[ECON 2G03] - Midterm Exam Guide - Everything you need to know! (12 pages long)
5 Oct 2016
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Both functions contain exactly the demand is the mirror image of same information . Geometrically, the inverse the direct demand with price on the vertical axis & quantity on the horizontal axis. 5 in" gn of p to p. Note that the two functions have inverse slopes. In a market with several consumers market demand gives aggregate quantity demanded as a function of price. Example : d ( d= 20 - p. Where dlp) is q - aggregate quantity demanded. At pts . aggregate demand is 15 units. Definition : the inverse market demand gives us price as a function of aggregate quantity ie the value of the price such that 0 units in total are demanded. Example : d ( p) = 20 . Q= 20 . p p = 20 - q. 15 units . price would have to be . Idea : the same restt holds for the inverse demand function.
