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Question 359127: when milk is priced at $1.10 per quart and 4000 quarts are sold ber week but when milk is priced at $1.25 per quart only 3700quarst are sold:
a: use the given price and quantity to find a linear demand equasion of the form y=b+mp that gives the weekly demand y (in quarts) when the price of milk is p dollars per quart. Sketch a graph of the equation.
b: what does the slope og the graph og the demand equation represent and why is it negetive?
c: what do the p and y intercepts represent?
d: at what price will the demand drop to 3000 quarts?
e: a survey of local dairies indicates that the supply equation for milk sold at Akamee Dairy is y= 7800p-5070. sketch this line on your graph from part a.
f: what does the p-intercept of the supply equation represent?
g: from your graph, estimate the coordinates of the equilibrium point(the point at which the graghs of the supply and demand equation meet).
h: find the coordinates of the equilibrium point algebraically. What is the equalibriam price and how many quarts of milk are sold at this price?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! when milk is priced at $1.10 per quart and 4000 quarts are sold ber week but when milk is priced at $1.25 per quart only 3700quarst are sold:
(1.10,4000) and (1.25,3700)
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a: use the given price and quantity to find a linear demand equation of the form y=b+mp that gives the weekly demand y (in quarts) when the price of milk is p dollars per quart. Sketch a graph of the equation.
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slope = -300/0.15 = -2000
intercept = ?
4000 = -2000(1.1) + b
b = 6200
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y = -2000x + 6200
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b: what does the slope of the graph of the demand equation represent and why is it negetive?
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For every one dollar increase in the price, the demand goes down 2000 bottles.
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c: what do the p and y intercepts represent?
(0,6200) Theoretically, the demand is 6200 when the price is zero.
(0.3226,0) Theoretically, the demand is zero when the price is 32 cents
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d: at what price will the demand drop to 3000 quarts?
Solve 3000 = -2000x + 6200
x = $1.60
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e: a survey of local dairies indicates that the supply equation for milk sold at Akamee Dairy is y= 7800p-5070. sketch this line on your graph from part a.
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etc.
Cheers,
Stan H.
f: what does the p-intercept of the supply equation represent?
g: from your graph, estimate the coordinates of the equilibrium point(the point at which the graghs of the supply and demand equation meet).
h: find the coordinates of the equilibrium point algebraically. What is the equalibriam price and how many quarts of milk are sold at this price?
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