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Question 136591: This is a question from my Economics Course. No one in my group can figure it out. We are supposed to plot a Supply, Price, and Quantity graph based off the answer/s we get from the algebraic equation given. Here are the questions, exactly as they appear in the book:
Assume that the demand and supply equations for bushels of wheat are a follows:
Qd = 15 - (3*P)
Qs = 1 + (4*P)
Also assume that, in equilibrium, Qd = Qs. Solve for equilibrium price by setting quantity demanded equal to quantity supplied. What is the disequilibrium condition at prices of $1.50 and $2.50?
I appreciate any help you can give us.
Thank you!
Answer by scott8148(6628)   (Show Source):
You can put this solution on YOUR website! the Quantity (in bushels) is plotted on the vertical (y) axis
__ the Price (in dollars) is plotted in the horizontal (x) axis
there are two lines, one for supply and another for demand
__ they intersect at the equilibrium price point
the equations are in slope-intercept form __ think of Q as y and P as x
__ Q=mP+b
__ Qd has a negative slope (downward from left to right)
__ Qs has a positive slope (upward from left to right)
the simultaneous solution for the equilibrium point
__ 15-(3*P)=1+(4*P) __ 14=7P __ 2=P
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