Question

using the liners to write down the equation.

16 zód D=Q=20-21 s= ? 10- £Q P=2+ - Q Q = -412P p*= 6 Q*=8

Answer 1

P = 10 - mQ

When P = 6 then, Q = 8

6 = 10 - m × 8

8m = 4

m = 0.5

Slope of demand curve is 0.5

P = 10 - 0.5Q

Or, Q = 20 - 2P

In case of supply curve the curve must start from 2 in the horizontal intercept

Supply curve, Q - 2= P

Or, Q = P + 2

It cannot start from zero that is origin as P* is not equal to Q*.

Hence, the supply curve must start from Q = 2 when P = 0

Supply curve is Q = P + 2

Proof: equate Qd with Qs we get

20 - 2P = P + 2

3P = 18

P* = $ 6

Q* = 20 - 2 × 6 = 8 units.