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Models competitive inhibition, where the apparent Km is multiplied by one plus the ratio of inhibitor concentration to Ki while Vmax is unchanged.
Competitive inhibition
alpha = 1 + [I]/Ki; v = Vmax[S] / (alpha x Km + [S]); Vmax is unaffected
It lowers Vmax while leaving Km unchanged, because the inhibitor binds away from the active site.
Yes, by raising substrate concentration, which is why competitive inhibitors lose effect at saturation.