Question 256069: the supply S of a commodity (in thousands of units), if the price is P dollars per unit, is given by the equation
s= 0,3p+3
the demand D for that commodity(in thousands of units), if the price is p dollas per unit, is given by the equation
d= -o,5p+9
the value of p for which s = d is called equilibrium price
a) graph both equations in the same coordinate plane. (let the horizontal axis represent price and the vertical axis represent supply or demand in thousands of units)
b) determine the equilibrium price
c) what will happen at prices greater than this price?
TUTORS i really need help with this because i dont even understand the problem either so i dont really know what procedure to apply :S:S anyway thans for any help that you can give me
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! the supply S of a commodity (in thousands of units), if the price is P dollars per unit, is given by the equation
s= 0.3p+3
the demand D for that commodity(in thousands of units), if the price is p dollas per unit, is given by the equation
d= -o.5p+9
the value of p for which s = d is called equilibrium price
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a) graph both equations in the same coordinate plane. (let the horizontal axis represent price and the vertical axis represent supply or demand in thousands of units)
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b) determine the equilibrium price
Solve 0.3p+3 = -0.5p+9
0.8p = 6
p = 7.5
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c) what will happen at prices greater than this price?
As price rises demand goes decreases.
Cheers,
Stan H.
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