Example
The supply for cookies follows the following equation: `Q_s = 10 + 2P`.
Solving for P:
$$ \begin{align*} Q_s &= 10 + 2P \\ 2P &= Q_s - 10 \\ P &= \frac{Q_s - 10}{2} \end{align*} $$ The inverse supply is `P = \frac{Q_s - 10}{2}`Question
The supply for bananas follows the equation `Q_s = 5520 + 69 P`.
Find the inverse supply function.
Determine the price of bananas when the quantity supply is 38640.
Let's transform the supply function into the inverse supply function.
$$ \begin{align*} Q_s &= 5520 + 69 P \\ 69 P &= Q_s - 5520 \\ P &= \frac{5520 - Q_s}{69} \end{align*} $$The inverse supply function is `P = \frac{5520 - Q_s}{69}`.
If the quantity supplied is 38640, then
$$ P = \frac{5520 - 38640}{69} = 480 $$The price producers get for a banana is $480.