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An economic consultant for X Corp, recently provided the firm marketing manager with this estimate of the demand function for the firm product:
Q = 15,000 -3P -1Py -1M + 2A
Where represent the amount consumed of good X,P is the price of good X,P, is the price of good Y, M is income and A, represent the amount of advertising spent on good X.
Problem 1: What is the inverse demand function, where in base on the demand function provided we can derived the P? The inverse demand function, reveals how much consumer are willing and able to pay for each additional unit of good X.
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