In economics, an inverse demand function is a function that maps the quantity of output supplied to the market price (dependent variable) for that output.
In mathematical terms, if the demand function is f(x), then the inverse demand function is f -1(x). This is to say that the inverse demand function is the demand function with the axes switched. This is useful because economists typically place Price (P) on the vertical axis and Quantity (Q) on the horizontal axis.
To compute the inverse demand equation simply switch the Q and P variables in the demand function and solve for Q.
See also
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