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)
Exercise 4.2 Prove that, if A and B are independent, then so are A and B, Ac and
B, and A and B.
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Chapter 4 Solutions
Finite Mathematics for Business, Economics, Life Sciences and Social Sciences Plus NEW MyLab Math with Pearson eText -- Access Card Package (13th Edition)
University Calculus: Early Transcendentals (4th Edition)
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