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  3. 1 consider the following demand curve q25005q a find an...

Question: 1 consider the following demand curve q25005q a find an...

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1. Consider the following demand curve: Q-250-0.5Q. a) Find an inverse demand curve and sketch it. Indicate intercepts and slope. If this were a firms demand, which price would generate the highest revenue for the firm? Explain and illustrate on the graph above. b) c) Suppose the demand has increased. Write down a new demand function for the increased demand (ie. you will need to write new demand expression. You may change intercepts and slope) Illustrate on the graph above
d) (Use the increased demand you wrote in c.) If the price thfim charges staythe same, what revenue will he firm make? Would you recommend to keep the price or change it, in order to maximize the revenue?
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