Inverse Demand

The inverse demand curve represents the price as a function of the quantity demanded.

Example

The demand for cookies follows the following equation: `Q_D = 10 - 2P`.

Solving for P: $$ \begin{align*} Q_D &= 10 - 2P \\ 2P &= 10 - Q_D \\ P &= \frac{10 - Q_D}{2} \end{align*} $$

The inverse demand is `P = \frac{10 - Q_D}{2}`.

Question

The demand for cookies follows the equation `Q_D = 9600 - 80 P`.

What is the expression of the inverse demand function?

Let's transform the demand function into the inverse demand function. $$ \begin{align*} Q_D &= 9600 - 80 P \\ 80 P &= 9600 - Q_D \\ P &= \frac{9600 - Q_D}{80} \end{align*} $$

The inverse demand function is `P = \frac{9600 - Q_D}{80}`.