Inverse Demand Function

Inverse Demand Function = Amount manufacturers/companies are willing to produce/supply if the price were p, so if you look at the graph on the left, the higher the price the more the quantity supplied whereas in the demand (see post below) curve the lower the price the higher the demand.

Remember demand function was expressed as: qD q = quantity. And the formula is qDp (how many units will be sold at what price).



Quick Review before the example:
pD = inverse demand function
qD = deman function

qDp = how many consumers are willing to buy (demand) if price is p
pDq = how much suppliers are willing to produce/supply if price is p

Remember the last example:
6q+8p=125

In this case we want "p" (or express in p) on the left as opposed to "q"
6q+8p=125
-6q -6q

8p = 125-6q
pDq = 125-6q/8

Then let's substitute w/ 4 as in the last example

p = (125-6x4)/8
p = 125 - 24/8
p = 101/8