Question

The supply curve for product X is given by [Q_{X}^{S} = -500 + 20P_X (a) Find the inverse supply curve (b) How much surplus do producers receive when

Answer 1

The supply curve for product X is given by QXS = -520 + 20PX .
a. Find the inverse supply curve.
Answer:
QXS = -520 + 20PX or
20Px = Qxs + 520 or
Px = (Qxs/20)+26
P = _26_ + _(1/20)_ Q

Answer 2

The surplus is
P=_26 _ + _ (1/20)_ Q