Plot the following Price and Quantity combinations: (4, 8), (1, 2), (5, 10) Is your graph more likely to be a demand curve or a supply curve? Why? Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?
Supply and Demand Problem Set[1]
Use the following graph to answer questions 1 through 3:
- Plot the following Price and Quantity combinations: (4, 8), (1, 2), (5, 10)
- Is your graph more likely to be a demand curve or a supply curve? Why?
- Using the equation of a line, and P for price and Q for quantity, what is the algebraic formula of this curve?
Use the following graph to answer questions 4 and 5:
- Plot the following Price and Quantity combinations. Note that the points are given in the format (Quantity, Price).
(0, 50), (2, 40), (4, 30), (6, 20), (8, 10)
- Using the equation of a line, what is the algebraic formula of this demand curve?
Use the following information to answer questions 6 through 10:
Suppose the equation of the line changes to . Compute the quantity demanded at each indicated price.
Price: $50, Quantity:- Price: $40, Quantity:
- Price: $30, Quantity:
- Price: $20, Quantity:
- Price: $10, Quantity:
Use the following graph to answer questions 11 through 14:
Let's call the original demand curve (from Question 4) D1 and the new demand curve (from Questions 6-10) D2. Plot both of the demand curves on the graph above.
Use the formulas for the two demand curves to compute the quantity demanded shown by each curve at a price of $34.
- Demand Curve D1: Price: $34, Quantity:
- Demand Curve D2: Price: $34, Quantity:
- Describe what has happened to demand in this problem.
Use the following information to answer questions 15 and 16:
Use the following two equations for the demand and supply curves to compute the
Demand curve:
Supply curve:
- What is the value of the equilibrium price?
- What is the
equilibrium quantity ?
Use the following information to answer questions 17 and 18:
Suppose Congress cuts personal income tax rates.
- Draw a simple supply and demand graph to show how this would affect the market for refrigerators.
- Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.
Use the following information to answer questions 19 and 20:
Suppose that scooter workers accept a pay cut of 2 dollars per hour.
- Draw a graph to show how this would affect the market for scooters.
- Why does this shift occur? How does that affect the equilibrium price and quantity? Explain.
[1] This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https://www.desmos.com/calculator.
![110+
Price
105-
100-
95
90+
85
80
75+
70-
65
60+
55
50
45+
40+
35+
30
25
20
15+
10+
Quantity
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
2 3 4 5
6 7 8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce7d4deb-8fc9-4f92-b18c-910519a202a5%2Fa663db6e-2c2f-4517-88fe-6b5d101fe7ab%2Fxcqnrc8_processed.png&w=3840&q=75)
![25+
24
+
23+
22+
21
20+
19+
18+
17+
16+
15+
14+
13+
12+
10+
9+
8+
6+
4+
2-
+
I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce7d4deb-8fc9-4f92-b18c-910519a202a5%2Fa663db6e-2c2f-4517-88fe-6b5d101fe7ab%2F8oug0f2_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)
![Principles of Economics 2e](https://www.bartleby.com/isbn_cover_images/9781947172364/9781947172364_smallCoverImage.jpg)