13. Application Problem Use the table to find the (a) Linear Supply equation: P = mx +b (b) Linear Demand equation: P = mx + b Prof herbert (c) The equilibrium point. This is the point where the two lines meet. Demand in millions 270 250 Year Supply In millions 340 Price 2002 2003 S per unit 2.22 2.72 370 Hint to finding solution (a) Find the slopes for demand and supply using the point (x,p) given in the table (b) Use point slope equation substituting the slope obtained and one point (x,p) to obtain the requires demand and supply equations respectively. (c) Graph the two equations, The point (x,p) the two lines meet is the equilibrium point meaning when Demand = Supply. (x,p)
13. Application Problem Use the table to find the (a) Linear Supply equation: P = mx +b (b) Linear Demand equation: P = mx + b Prof herbert (c) The equilibrium point. This is the point where the two lines meet. Demand in millions 270 250 Year Supply In millions 340 Price 2002 2003 S per unit 2.22 2.72 370 Hint to finding solution (a) Find the slopes for demand and supply using the point (x,p) given in the table (b) Use point slope equation substituting the slope obtained and one point (x,p) to obtain the requires demand and supply equations respectively. (c) Graph the two equations, The point (x,p) the two lines meet is the equilibrium point meaning when Demand = Supply. (x,p)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:13. Application Problem
Use the table to find the
(a) Linear Supply equation: P = mx + b
(b) Linear Demand equation: P = mx + b
Prof herbert
(c) The equilibrium point. This is the point where the two lines meet.
Supply
In millions
Demand
in millions
Year
Price
$ per unit
2002
2003
340
270
2,22
370
250
| 2.72
Hint to finding solution
(a) Find the slopes for demand and supply using the point (x,p) given in the table
(b) Use point slope equation substituting the slope obtained and one point (x,p) to
obtain the requires demand and supply equations respectively.
(c) Graph the two equations, The point (x,p) the two lines meet is the equilibrium
point meaning when Demand = Supply. (x,p)
14. Modeling problem
Medgar Evers College bookstore sells a custom printed T-Shirt. The cost function is
given as C(x) = 250 + 4.50x.
(a) What is the slope in the cost function
(b) Interpret the meaning of the slope in the context of this problem.
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