18. Suppose that a typical consumer has an inverse demand for frog’s legs given by the following:

a. Show that the demand curve is unit-elastic.

b. If this customer came into your restaurant and asked for frog’s legs, would you be better off charging a high price or a low price?

Transcribed Image Text:

3 P QD- A graph of that inverse demand curve is given below: Price ($/frog leg) $3 A Slope = -3 Slope =- B 2- Slope = - 1- Demand 0 1 2 3 Quantity of frog legs