#3 Suppose the supply function for product X is given by Qs^X

Qs^X = -30 + 2Px - 4Pz

a.How much of product X is produced when Px = $600 and Pz = $60

Qs^X = - 30 + 2(600) - 4(60) = 930 units.

b. Notice that although Qs^X = - 30 + 2(80) - 4(60) = -110, negative output is impossible => Quantity supplied is = 0.

c. To find the supply function, insert Pz= 60 into the supply equation =>

Qs^X = - 30 + 2Px -4(60) = - 270 + 2Px.

The supply equation is Qs^X = - 270 + 2Px.

To obtain the inverse supply equation, simply solve this equation for Px to obtain Px= 135 + 0.5 Qs^X.

d. Graph the inverse supply function ?