Suppose the yearly market demand for compact cars in Montana is given by Qd = 1,000 - 0.5 P and the market supply for those cars is given by Qs = 350 + 0.15 P, where P = price (per car).

In equilibrium, how many compact cars would be sold Montana and at what price?

Continuing from the previous question with a yearly market demand for compact cars in Montana of Qd = 1,000 - 0.5 P and a market supply of Qs = 350 + 0.15 P.Suppose large truck manufacturers were lobbying to get the number of compact cars sold in Montana each year limited to 300.What is the most a consumers' association would be willing to spend to fight the legislation? Hint: how much consumer surplus would be lost?\

Please clarify how the inverse demand function was derived in the explanation.