The Demand Function Is Described by the Equation Q(p)= 130

question 20

Multiple Choice

The demand function is described by the equation q(p) = 130 - p/5.The inverse demand function is described by the equation

• A)p(q)= 650 - 5q.
• B)p(q)= 1/130- q/5.
• C)q(p)= 130 - 5p.
• D)q(p)= 1/(130 - p/5).
• E)p(q)= 130 - q/5.

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Definitions:

Circular Flow

An economic model that depicts how money moves through the economy, from production to income to consumption and back to production.

Net Domestic Product

Gross domestic product minus depreciation.

Depreciation

The process by which the value of an asset decreases over time, often due to wear and tear or obsolescence.

Transfer Payments

Payments made by the government to individuals without the expectation of goods or services in return, such as welfare benefits and social security.