SOLUTION: Free Market. The function S=5000+200x and D= 9500-100x express the supply S and the Demand D, respectively, for a popular compact disc brand as a function if its price x (in dollar

Algebra ->  Human-and-algebraic-language -> SOLUTION: Free Market. The function S=5000+200x and D= 9500-100x express the supply S and the Demand D, respectively, for a popular compact disc brand as a function if its price x (in dollar      Log On


   

Question 145573: Free Market. The function S=5000+200x and D= 9500-100x express the supply S and the Demand D, respectively, for a popular compact disc brand as a function if its price x (in dollars).
a)Graph the functions on the same coordinate system
b)What happens to the supply as the price increases?
c)What happens to the demand as the price increases?
d)The price at which supply and demand are equal is called the equilibrium price. What is the equilibrium price?

Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!
graph%28600%2C600%2C-10%2C100%2C-100%2C10000%2C5000%2B200x%2C9500-100x%29

The green line is the Demand equation.

b. Pick a number for x. Put it into the Supply equation and do the arithmetic. Then pick a larger number for x. Put it into the Supply equation and do the arithmetic. What happened to S when x got larger? That's your answer.

c. Do the same thing for the Demand equation.

d. If you want to find the point where Supply equals Demand, set the two expressions equal to each other:

5000%2B200x=9500-200x

Now solve for x.