Supply and demand for corn. At $ 2.13 per bushel, the annual supply for corn in the Midwest is 8.9 billion bushels and the annual demand is 6.5 billion bushels. When the price falls to $ 1.50 per bushel, the annual supply decreases to 8.2 billion bushels and the annual demand increases to 7.4 billion bushels. Assume that the price-supply and price-demand equations are linear. (A) Find the price-supply equation. (B) Find the price-demand equation. (C) Find the equilibrium price and quantity. (D) Graph the two equations in the same coordinate system and identify the equilibrium point, supply curve, and demand curve.
Supply and demand for corn. At $ 2.13 per bushel, the annual supply for corn in the Midwest is 8.9 billion bushels and the annual demand is 6.5 billion bushels. When the price falls to $ 1.50 per bushel, the annual supply decreases to 8.2 billion bushels and the annual demand increases to 7.4 billion bushels. Assume that the price-supply and price-demand equations are linear. (A) Find the price-supply equation. (B) Find the price-demand equation. (C) Find the equilibrium price and quantity. (D) Graph the two equations in the same coordinate system and identify the equilibrium point, supply curve, and demand curve.
Solution Summary: The author calculates the price-supply equation of corn, which is p=0.9x-5.88.
Supply and demand for corn. At
$
2.13
per bushel, the annual supply for corn in the Midwest is
8.9
billion bushels and the annual demand is
6.5
billion bushels. When the price falls to
$
1.50
per bushel, the annual supply decreases to
8.2
billion bushels and the annual demand increases to
7.4
billion bushels. Assume that the price-supply and price-demand equations are linear.
(A) Find the price-supply equation.
(B) Find the price-demand equation.
(C) Find the equilibrium price and quantity.
(D) Graph the two equations in the same coordinate system and identify the equilibrium point, supply curve, and demand curve.
Formula Formula Point-slope equation: The point-slope equation of a line passing through the point (x 1 , y 1 ) with slope m , is given by the following formula: y - y 1 = m x - x 1 Example: The point-slope equation of a line passing through (2, -6) with slope 5 is given by: y - (-6) = 5(x - 2) y + 6 = 5(x - 2)
nd
ave a
ction and
ave an
48. The domain of f
y=f'(x)
x
1
2
(=
x<0
x<0
= f(x)
possible.
Group Activity In Exercises 49 and 50, do the following.
(a) Find the absolute extrema of f and where they occur.
(b) Find any points of inflection.
(c) Sketch a possible graph of f.
49. f is continuous on [0,3] and satisfies the following.
X
0
1
2
3
f
0
2
0
-2
f'
3
0
does not exist
-3
f"
0
-1
does not exist
0
ve
tes where
X
0 < x <1
1< x <2
2
Morningstar tracks the total return for a large number of mutual funds. The following table shows the total return and the number of funds for four categories of mutual funds.
Click on the datafile logo to reference the data.
DATA file
Type of Fund
Domestic Equity
Number of Funds
Total Return (%)
9191
4.65
International Equity
2621
18.15
Hybrid
1419
2900
11.36
6.75
Specialty Stock
a. Using the number of funds as weights, compute the weighted average total return for these mutual funds. (to 2 decimals)
%
b. Is there any difficulty associated with using the "number of funds" as the weights in computing the weighted average total return in part (a)? Discuss. What else might be used for weights?
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c. Suppose you invested $10,000 in this group of mutual funds and diversified the investment by placing $2000 in Domestic Equity funds, $4000 in International Equity funds, $3000 in Specialty Stock…
The days to maturity for a sample of five money market funds are shown here. The dollar amounts invested in the funds are provided.
Days to
Maturity
20
Dollar Value
($ millions)
20
12
30
7
10
5
6
15
10
Use the weighted mean to determine the mean number of days to maturity for dollars invested in these five money market funds (to 1 decimal).
days
Chapter 4 Solutions
Pearson eText for Finite Mathematics for Business, Economics, Life Sciences, and Social Sciences -- Instant Access (Pearson+)
University Calculus: Early Transcendentals (4th Edition)
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