Question 1:

For each of the following demand curves, (i) D(p) = max {20 - 2p, 0} (ii) D(p) = 200/ VP (iii) In D(p) = 20 - 4p (iv) In D(p) = In 40 - 4 Inp 1. Compute the inverse demand curve. 2. At price p, what is the price elasticity of demand? 3. At what price is the demand elasticity equal to -1? 4. Write an expression for total revenue as a function of the price. Use calculus to find the revenue-maximizing price. Check the second-order condition