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Gurgling Springs, Inc. is a bottler of natural spring water distributed throughout the New England states. Five-gallon containers of GSI spring water are regionally promoted and distributed through grocery chains. Operating experience during the past year suggests the following demand function for its spring water:
Q = 450 - 100P + 0.0001Pop + 0.005Y + 0.003A where: Q = quantity in thousands of containers,
P = Price ($) = $4
Pop = Population (# of people) = 4,000,000
Y = Disposable Income per capita ($) = $50,000
A = Advertising expenditures ($) = 400,000
a. Determine the demand curve faced by GSI.
b. What is the inverse demand curve faced by GSI? (note: simplify-no fractions)
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