Suppose the supply function for product X is given by QXS = – 30 + 2Px – 4Pz.
a. How much of product X is produced when Px = $600 and Pz = $60?
b. How much of product X is produced when Px = $80 and Pz = $60?
c. Suppose Pz = $60. Determine the supply function and inverse supply function for good X. Graph the inverse supply function.
Supply function: QXS =
Inverse supply function: PX =
Graph the inverse supply function from QX = 0 to QX = 200
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