Graphical representation of supply and demand curves.

Question

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Answer 1

Question

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

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Answer 2

Question

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

Answer 6

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

Answer 7

Chapter 1, Problem 1.1P

(a)

To determine

Graphical representation of supply and demand curves.

Answer 8

(a)

Expert Solution

Explanation of Solution

The figure (1) below represents the graphical representation of given demand and supply curves. Here, X- axis measures the quantity (Q) and Y-axis measures price (P).

The downward sloping curve is demand curve (DD) and the upward sloping curve is supply curve (SS).

EBK INTERMEDIATE MICROECONOMICS AND ITS, Chapter 1, Problem 1.1P

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

Algebraic equation of supply and demand curves.

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

Answer 13

(b)

To determine

Algebraic equation of supply and demand curves.

Answer 14

(b)

Expert Solution

Explanation of Solution

As shown in figure (1) above, the given points lie along two straight lines.

Use following point slope formula to calculate algebraic equation:

P −P1 = (P2 −P1 Q2− Q1)(Q − Q1) (1)

To calculate algebraic equation of demand curve, plug (700,1) and (600,2) in (1).

P −1= ( 2− 1 600−700)(Q −700) P −1 = −(1 100)(Q−700)100 −100P = Q −700Q = 800−100P

To calculate algebraic equation of supply curve, plug (100,1) and (300,2) in (1).

P −1 = ( 2− 1 300- 100)(Q −100) P −1 = (1 200)(Q−100)200 P−200 = Q −100Q = −100 +200P

Thus, equations of demand (Q_D) and supply (Q_S) curves are as follows:

QD = 800−100P

Qs = −100 +200P

Answer 15

(b)

Expert Solution

Answer 16

(b)

Expert Solution

Answer 17

Expert Solution

Answer 18

(c)

To determine

Excess demand of the good if the market price is zero.

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

Answer 19

(c)

To determine

Excess demand of the good if the market price is zero.

Answer 20

(c)

Expert Solution

Explanation of Solution

Excess demand refers to a situation where market demand is more than market supply at the given market price. It can be calculated by subtracting market demand from market supply.

Excess demand = QD−QS= 800 −100P−(−100 +200P)= 800−100(0) −(−100+200(0) ) ( given P=0)= 800−−(−100)= 900

Answer 21

(c)

Expert Solution

Answer 22

(c)

Expert Solution

Answer 23

Expert Solution

Answer 24

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900

Answer 25

(d)

To determine

Excess supply of the good if the market price is $6/gallon.

Answer 26

(d)

Expert Solution

Explanation of Solution

Excess supply refers to a situation where market supply is more than market demand at the given market price. It can be calculated by subtracting market supply from market demand.

Excess supply = QS−QD= -100 +200P −(800−100P )= -100 +200(6) − (800−100(6) ) ( given P = $6/gallon)= 1100−200= 900