The inverse demand for carbon-steel chef’s knives is given by p = 120 – 1/2Q^D, where P is the price of a chef’s knife and QD is the quantity of chef’s knives desired per week, in thousands. The inverse supply of chef’s knives is given by where QS is the quantity of chef’s knives offered for sale each week, in thousands.

a. Accurately graph the inverse supply and inverse demand curves, with P on the vertical axis and Q on the horizontal axis.

b. What are the buyers’ and sellers’ choke prices in your graph? How can you find those same choke prices by looking at the inverse demand and inverse supply equations?

c. Equate inverse demand and inverse supply to find the market equilibrium quantity of chef’s knives sold. In equilibrium, Q^b = Q^s, so you can replace both QD and QS with a generic letter Q.

d. Plug the quantity you found in (c) into the inverse demand curve to solve for the equilibrium price. Then double-check your work by plugging that same quantity into the inverse supply curve.