Consider the following demand function

How to solve for the inverse demand function based on the given demand function?

To determine the inverse demand function:

We need to swap the roles of the price and quantity variables in the demand function.

The demand function provided is:

Qd = 900 - 15P

To find the inverse demand function, we interchange P and Qd:

P = (900 - Qd) / 15

By dividing both sides by 15, we get:

P = 60 - 0.0667Qd

Therefore, the inverse demand function is represented by Option 1: P = 60 - 0.0667Qd.