Work the following exercise. (See Examples 1 – 4.)
Let the supply and demand for sugar be given by
supply: p = 1.4q - .6 and demand: p = -2q + 3.2,
where p is in dollars.
(a) Graph these on the same axes.
(b) Find the equilibrium quantity.
(c) Find the equilibrium price.
(d) On what interval does supply exceed demand?
Example 1
Joseph Nolan has studied the supply and demand for aluminum siding and has determined that the price per unit, * p, and the quantity demanded, q, are related by the linear equation
Example 2
Suppose the economist in Example 8 concludes that the supply q of siding is related to its price p by the equation
Example 3
The supply and demand curves of Examples 8 and 9 are shown in Figure 3.22 . Determine graphically whether there is a surplus or a shortage of supply at a price of $40 per unit.
Example 4
In the situation described in Examples 8 – 10, what is the equilibrium quantity? What is the equilibrium price?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.