The following table shows the quantity D of wheat, in billions of bushels, that wheat consumers are willing to purchase in a year at a price P, in dollars per bushel. D = quantity of wheat P = price 1.0 $2.05 1.5 $1.75 2.0 $1.45 2.5 $1.15 In economics, it is customary to plot D on the horizontal axis and P on the vertical axis, so we will think of D as a variable and of P as a function of D. (a) Show that these data can be modeled by a linear function. For each increase of 0.50 in D there is of in P. Find its formula. (Use P for price and D for quantity.) P = −.6d+265 (b) Add the graph of the linear formula you found in part (a), which is called the market demand curve, to the following graph based on the following table for market supply curve. S = quantity of wheat P = price 1.0 $1.35 1.5 $2.40 2.0 $3.45 2.5 $4.50
The following table shows the quantity D of wheat, in billions of bushels, that wheat consumers are willing to purchase in a year at a price P, in dollars per bushel. D = quantity of wheat P = price 1.0 $2.05 1.5 $1.75 2.0 $1.45 2.5 $1.15 In economics, it is customary to plot D on the horizontal axis and P on the vertical axis, so we will think of D as a variable and of P as a function of D. (a) Show that these data can be modeled by a linear function. For each increase of 0.50 in D there is of in P. Find its formula. (Use P for price and D for quantity.) P = −.6d+265 (b) Add the graph of the linear formula you found in part (a), which is called the market demand curve, to the following graph based on the following table for market supply curve. S = quantity of wheat P = price 1.0 $1.35 1.5 $2.40 2.0 $3.45 2.5 $4.50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following table shows the quantity D of wheat, in billions of bushels, that wheat consumers are willing to purchase in a year at a
| D = quantity of wheat | P = price |
|---|---|
| 1.0 | $2.05 |
| 1.5 | $1.75 |
| 2.0 | $1.45 |
| 2.5 | $1.15 |
In economics, it is customary to plot D on the horizontal axis and P on the vertical axis, so we will think of D as a variable and of P as a function of D.
(a) Show that these data can be modeled by a linear function.
Find its formula. (Use P for price and D for quantity.)
P =
(b) Add the graph of the linear formula you found in part (a), which is called the marketdemand curve, to the following graph based on the following table for market supply curve.
For each increase of 0.50 in D there is of in P.
Find its formula. (Use P for price and D for quantity.)
P =
−.6d+265
(b) Add the graph of the linear formula you found in part (a), which is called the market
| S = quantity of wheat | P = price |
|---|---|
| 1.0 | $1.35 |
| 1.5 | $2.40 |
| 2.0 | $3.45 |
| 2.5 |
$4.50 |
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