Work the following exercise. (See Examples 1 – 4.)Let the supply and demand for radial tir...

Work the following exercise. (See Examples 1 – 4.)

Let the supply and demand for radial tires in dollars be given by

(a) Graph these equations on the same axes.

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(b) Find the equilibrium quantity.

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(c) Find the equilibrium price.

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?