The demand for coffee is given by the following equation, where QP stands for the quantity demanded and P stands for price. QP = 100 - 4P The supply of coffee is given by the following equation, where QS stands for the quantity supplied and P stands for price. Q³ = -10+2P For parts a-d, consider a graph of the demand and supply curves with price on the vertical axis and quantity on the horizontal axis. a. What is the slope of demand? Slope- b. At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)? P= c. What is the slope of supply? Slope-[ d. At what price is quantity supplied equal to zero (this is, graphically, the vertical intercept of Supply)? P= 5

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question
-4 as the answer for a) is incorrect and the answer 2 for c) is incorrect.
The demand for coffee is given by the following equation, where QP stands for the quantity demanded and P stands for price.
QP = 100 - 4P
The supply of coffee is given by the following equation, where QS stands for the quantity supplied and P stands for price.
Q³ = -10+2P
For parts a-d, consider a graph of the demand and supply curves with price on the vertical axis and quantity on the horizontal axis.
a. What is the slope of demand?
Slope-
b. At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)?
P=
c. What is the slope of supply?
Slope-[
d. At what price is quantity supplied equal to zero (this is, graphically, the vertical intercept of Supply)?
P=
5
Transcribed Image Text:The demand for coffee is given by the following equation, where QP stands for the quantity demanded and P stands for price. QP = 100 - 4P The supply of coffee is given by the following equation, where QS stands for the quantity supplied and P stands for price. Q³ = -10+2P For parts a-d, consider a graph of the demand and supply curves with price on the vertical axis and quantity on the horizontal axis. a. What is the slope of demand? Slope- b. At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)? P= c. What is the slope of supply? Slope-[ d. At what price is quantity supplied equal to zero (this is, graphically, the vertical intercept of Supply)? P= 5
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