Question

3. Einding equation of a demand curve: a) Use x-axis to represent the quantity demanded (Q), and y-axis to represent the price (P) of ice cream. Rewrite the table above indicating each ordered pair. Then use it to obtain a scattered plot of Q vs P. Describe the trend of demand as a function of price. The price of ice- cream in dollar (P) The quan Ly Pi Rate of change of demanded of ice cream(Q) 0.00 16 2.00 2.50 3.00 b) Use each ordered pair (x, y) to compute average rate of change of price. Interpret one value. Does these values suggest a linear trend? Explain c) Join the points you graphed in a) part. Assume that the trend is linear. Use any two pair of points to find the equation of the line. We call this graph a demand curve. 4. Suppose that this month you get promoted and your salary increases. You will be able to consume one additional ice cream under each price. That is when price is $0.00 you will consume 20 ice creams. When it is S.50 you will consume 17 ice creams & so on a) Make a chart of new x and y values. Graph the new demand curve and compare it with the one you found in question 3c) above. Where does the demand curve shift?

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Answer 1

M T W Th F S Su P . Rate of change in P 19 0.5 16 of undefin 13 10 (X,Y)= (B, P) (19,0) _ (16,05) (13,1). (10,1'5) (72) 14,25) (1,3) 100 1:50 2:00 2.50 300 + 1 +05 +0:33 +0.25 +0:2 increased quantity demanded As the price dropped. level I o Clois) .6 (16,0.5) (1970) a net (B., P.) = (712) (02, P2) = (13, 1) scope 82-8

substitute the slope in the Slope intercept form of the equation. I y = -| xtc. Substitute either point into the equation des 2 - -7 + c La 2 y = -x + 19 a. by 19 -