document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=251674>Question 251674</A>: <I><SPAN STYLE=\"word-break: break-all;\"> SUPPLY AND DEMAND .AT $1.40 PER BUSHEL,THE DAILY SUPPLY FOR OATS IS 850 BUSHELS AND the daily demand is 850 bushels.when the price falls to $1.20 per bushel,the daily supply decreases to 350 bushels,and the daily demand increases to 980 bushels.assume that supply and demand equation are linear<BR>\n" );
document.write( "A-find the supply equation.<BR>\n" );
document.write( "B-find the demand equation.<BR>\n" );
document.write( "C-find the equilibrium price and quantity.<BR>\n" );
document.write( "D-graph the two equations in the same coordinate system and identify the equilibrium point,supply curve,and demand curve </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #183881 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=183881\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> let x1 = 120 cents<BR>\n" );
document.write( "let x2 = 140 cents\r<BR>\n" );
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document.write( "for the supply equation:\r<BR>\n" );
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document.write( "let y1 = 350<BR>\n" );
document.write( "let y2 = 850\r<BR>\n" );
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document.write( "for the demand equation:\r<BR>\n" );
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document.write( "let y1 = 980<BR>\n" );
document.write( "let y2 = 850\r<BR>\n" );
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document.write( "the x-axis will represent the price per bushel in cents.\r<BR>\n" );
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document.write( "the y-axis will represent the number of bushels.\r<BR>\n" );
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document.write( "example:\r<BR>\n" );
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document.write( "when x = 120, y = 980 for the demand equation, and y = 350 for the supply equation.\r<BR>\n" );
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document.write( "supply equation:\r<BR>\n" );
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document.write( "since this is a linear equation, it will take the slope-intercept form of:\r<BR>\n" );
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document.write( "y = mx + b where m is the slope and b is the y-intercept.\r<BR>\n" );
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document.write( "slope is equal to (y2-y1)/(x2-x1) = (850-350)/(140-120) = 500/20 = 25\r<BR>\n" );
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document.write( "substitute any of the 2 points to find the y-intercept.\r<BR>\n" );
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document.write( "equation is y = 25x + b\r<BR>\n" );
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document.write( "substitute (140,850) to get 850 = 25*140 + b\r<BR>\n" );
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document.write( "solve for b to get b = 850 - (25*140) = -2650\r<BR>\n" );
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document.write( "your supply equation is:\r<BR>\n" );
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document.write( "y = 25x - 2650\r<BR>\n" );
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document.write( "demand equation:\r<BR>\n" );
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document.write( "since this is a linear equation, it will take the slope-intercept form of:\r<BR>\n" );
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document.write( "y = mx + b where m is the slope and b is the y-intercept.\r<BR>\n" );
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document.write( "slope is equal to (y2-y1)/(x2-x1) = (850-980)/(140-120) = -130/20 = -6.5\r<BR>\n" );
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document.write( "substitute any of the 2 points to find the y-intercept.\r<BR>\n" );
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document.write( "equation is y = -6.5x + b\r<BR>\n" );
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document.write( "substitute (140,850) to get 850 = -6.5*140 + b\r<BR>\n" );
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document.write( "solve for b to get b = 850 - (-6.5*140) = 1760\r<BR>\n" );
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document.write( "your demand equation is:\r<BR>\n" );
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document.write( "y = -6.5x + 1760\r<BR>\n" );
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document.write( "you have two linear equations.\r<BR>\n" );
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document.write( "they are:\r<BR>\n" );
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document.write( "y = 25x - 2650 (supply equation)\r<BR>\n" );
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document.write( "y = -6.5x + 1760 (demand equation)\r<BR>\n" );
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document.write( "graph these equations to get:\r<BR>\n" );
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document.write( "your demand equation is sloping downwards.\r<BR>\n" );
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document.write( "as the price increases, the demand goes down.\r<BR>\n" );
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document.write( "your supply equation is sloping upwards.\r<BR>\n" );
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document.write( "as the price increases, the supply goes up.\r<BR>\n" );
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document.write( "your equilibrium point is when x = 140 cents which is equivalent to $1.40 per bushel.\r<BR>\n" );
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document.write( "the equilibrium point is when the demand equals the supply.\r<BR>\n" );
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document.write( "that is the point where the graph of the supply and demand equations intersects.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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