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# Consider the general supply function:Qs = 1,000 + 20P - 9PI + 25Fwhere

Qs = quantity supplied, P = price of the commodity, PI = price of a key input in the production process, and F = number of firms producing the commodity.

Derive the inverse of the supply function when PI = \$480 and F = 60. Then using the inverse supply function, what is the supply price for 40,000 units of the commodity?

a. \$91

b. \$111

c. \$1,000

d. \$2,091

Inverse supply we get by simply writing supply function... View the full answer Decomposing -
General Supply function
Qs = 1,000 + 20 p - 9P, +25F
Wherel , P1 = \$480
F = 60
put these into the above equation , we get
Q8 = 1,000+ 20 p - 9(480) +25(60)
= 1000 + 20 P - 4320 +...

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