Question

I need help understanding how to graph the inverse functions. I have you all th steps but it's part C i dont get. I dont know how to translate the informstion into the graph so cpuld you please shoe me step by step.

3. (25 points) The market demand function for corn is Q'(P) 5-2P and the market supply function for corn is Q(P)5P 6, where both quantities are measured in billions of bushels per year (a) (5 points) Calculate the competitive equilibrium price and quantity. Answer. Equating S(P)Q(P), we get 15 2P5P QS(P) 15 -2 x 3-9 billion bushels of corn. - 6. Therefore, (b) (5 points) What are the inverse demand function and the inverse supply function? Answer. Inverse demand function iS (15- 0 e2 15 Inverse supply function is PS() (+6)/5 (c) (10 points) Graph (i) the demand curve, (ii) the supply curve, and labeliii the competitive equilibrium, (iv) the consumer surplus, and (v) the producer surplus 6 CS PS 0 15 12 9 0

Answer 1

The muarse demand Junction isbasically the dlemandfumetion represrted in terme of(L)= 15-2P Inverse an Similant1tocaludalamy invence suppl.1 fudǐn nvente S (P) SP 6 orde to plol aneguation on

using invene demand funeon P 7.5 2.5 P5-07.5 Similolyfor ine supply fundio 23.2 5 D +663.2 5

1 它 crne ncas 801121-5) 7.5 Demand curve 7.5 Co1T 6.5 Quantty bellin buduls 45t 3-2 3.0 2.5 2.D 广_co, 2.5 -5 o 'b Supply une 3 7 oirheb bllom

Thus the two shaded region represent the consumer and producer surplus as labeled and e is the competitive equilibrium point where demand curve intersects the supply curve.