A good example of this can be found in the retail trade. Suppose a com- pany buy

Question

A good example of this can be found in the retail trade. Suppose a com- pany buys a dress wholesale for $100 and marks it up 100 percent, thereby establishing the retail price at $200. Suppose in a clearance sale the company decides to sell it at cost. This would represent a 50 percent markdown (i.e., from $200 down to $100). 3 The algebraic expression of this demand equation is Q = 36 - 2P and the inverse demand equation is P = 18 - 0.5Q.

Can someone show me step by step how the algebraic expressions were found. I'm rusty in algebra, thanks. I do know 100/200 = .5

Explanation / Answer

by Q = 36-2P if P = 200 then Q = 36-2*200 = -364

now if

Q= 364,

then P = 18-364/2 = -164, for P = 100, Q = 36-200 = -164

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