document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=304651>Question 304651</A>: <I><SPAN STYLE=\"word-break: break-all;\"> We’ll think about the laws of supply and demand of widgets. Let S be supply (the number of widgets available), D be demand (the number of widgets that people want) and x the price of one widget in dollars. Let’s use the equations S = 4000 + 200x and D = 9000 – 100x to represent each. Please draw the graph of these functions. These equations represent the way a normal economy works. Please answer the following questions:<BR>\n" );
document.write( " What happens to the supply as price increases? Why do you think this happens?<BR>\n" );
document.write( " What happens to the demand as price increases? Why?<BR>\n" );
document.write( " The price at which supply and demand are equal is called the Equilibrium Price. Calculate it for this    example.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #218139 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=218139\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Let’s use the equations S = 4000 + 200x and D = 9000 – 100x to represent each. Please draw the graph of these functions. These equations represent the way a normal economy works. Please answer the following questions:<BR>\n" );
document.write( "---<BR>\n" );
document.write( "Graph of Supply:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=graph%28400%2C300%2C-10%2C50%2C-10%2C10000%2C4000%2B200x%29 ALIGN=MIDDLE  ALT=\"graph%28400%2C300%2C-10%2C50%2C-10%2C10000%2C4000%2B200x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "-----------------------<BR>\n" );
document.write( "Graph of Demand:<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=graph%28400%2C300%2C-10%2C50%2C-10%2C10000%2C9000-100x%29 ALIGN=MIDDLE  ALT=\"graph%28400%2C300%2C-10%2C50%2C-10%2C10000%2C9000-100x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "------------------------<BR>\n" );
document.write( "What happens to the supply as price increases? increases<BR>\n" );
document.write( "---<BR>\n" );
document.write( "Why do you think this happens? the slope is positive 200<BR>\n" );
document.write( "----<BR>\n" );
document.write( "What happens to the demand as price increases? decreases <BR>\n" );
document.write( "Why? the slope is negative 100<BR>\n" );
document.write( "----<BR>\n" );
document.write( "The price at which supply and demand are equal is called the Equilibrium Price. Calculate it for this example.<BR>\n" );
document.write( "4000+200x = 9000-100x<BR>\n" );
document.write( "---<BR>\n" );
document.write( "300x = 5000<BR>\n" );
document.write( "x = 50/3 = $16.67<BR>\n" );
document.write( "=====================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );