Question

The intercept is calculated by the inverse supply curve. Q=-470.25+10Px Px=47.25+1/10Px The intercept is 47.25 I...

The intercept is calculated by the inverse supply curve. Q=-470.25+10Px Px=47.25+1/10Px The intercept is 47.25

I do not understand the math above. Can someone add a couple of steps to this to show how you got from -470.25 to 47.25?

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Answer #1

Ans. Q= -470.25 +10 Px

convert the supply equation into the inverse supply equation

Q+ 470.25 = 10 Px

   10 Px = Q +470.25

dividing both side by 10, we have

Px = 1/ 10 ( Q +470.25)

   multply by 1/10 to each part in right hand side equation, we have

Px = Q/10 + 470.25/10

Px = 470.25/10 +Q/10

change the decimal value into fraction, we have

Px = 47025/1000 +Q/10

again the convert the fraction into a decimal, we have

Px = 47.025 + Q/10

hence, the intercept is 47.025

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