Demand Curves
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Monthly sales data from a T shirt indicate that the demand curve for the T-shirts can be described as:
Q = 300 - 5P
where Q is T shirt sales and P is price.
Please step me through the following calculations:
- How many T-shirts could the cafe sell at $5 each?
- What price would they have to charge to sell 200 T shirts?
- Calculate the own price elasticity of demand for T-shirts at a price of $20.
- Calculate the inverse demand curve for the restaurant?
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Microeconomics-Answers:
Given, Q = 300 - 5P
a) When the price is $5, then the cafe could sell,
Q = 300-5 * 5
Q =300-25
Q =275 T-shirts
b) In order to sell 200 T-shirts, the respective price should be,
...
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