The demand curve for a truckload of firewood for college students in a small town is Qc = 400 – p. It is sometimes convenient to rewrite a demand curve equation with price on the left side. We refer to such a relationship as the inverse demand function. There-fore, the inverse demand curve for college students is p = 400 – Qc. The demand curve for other town residents is Qr = 400 – 2p.
a. What is the inverse demand curve for other town residents?
b. At a price of $ 300, will any firewood be sold to college students? What about other town residents? At what price is the quantity demanded by other town residents zero?
c. Draw the total demand curve, which aggregates the demand curves for college students and other residents.