Question

Suppose the supply function for product X is given by Q_X^S = - 30 + 2P_x  - 4P_z.

a. How much of product X is produced when P_x = $600 and P_z = $60?



b. How much of product X is produced when P_x = $80 and P_z = $60?



c. Suppose P_z = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function.

Supply function: Q_X^S = + P_X

Inverse supply function: P_X = + Q_X^S