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    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?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:23 pm ad1c9bdddf
    https://brainmass.com/economics/microeconomics/demand-curves-55958

    Solution Preview

    Please see the attached file.

    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,

    ...

    Solution Summary

    The solution answers the question(s) below.

    $2.19