Demand for lift tickets at a popular ski resort is given by: Qequals=2,500minus0
ID: 1150582 • Letter: D
Question
Demand for lift tickets at a popular ski resort is given by:
Qequals=2,500minus0.25pplus+2paltminus4plodgingplus+0.005Y
where:
pequals=price
paltequals=price
packageequals=$750750
Qequals=quantity
plodgingequals=price
lodgingequals=$250250
Yequals=consumer
incomeequals=$50 comma 00050,000
The inverse demand curve for lift tickets as a function of the quantity of lift tickets demanded (Q) can be written
pequals=price
of a lift ticketpaltequals=price
of a tropical vacationpackageequals=$750750
Qequals=quantity
demandedplodgingequals=price
of ski resortlodgingequals=$250250
Yequals=consumer
incomeequals=$50 comma 00050,000
Explanation / Answer
Direct demand function is
Q =2500 - 0.25P+ 2Palt -4Plodging +0.005Y.
Inverse demand function willbe
0.25P = 2500 - Q+ 2Palt -4Plodging +0.005Y.
P = 10000 - 4Q+ 8Palt -16Plodging +0.02Y.
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