Question 280795: Business and Finance.
A demand equation (sometimes called a demand curve) shows how much money people would pay for a product depending on how much that product is available on the open market. Often, the demand equation is found empirically (through experiment, or market research).
The demand equation for a certain type of printer is given by:
D= -200p + 35,000
The supply equation is predicted to be:
A). Does the graph of the supply equation open up or down? How did you determine this?
B). What is the point of the vertex of the supply equation?
C). How many solutions are there to the supply equation? How do you know?
D). Find the equilibrium price (Hint: The equilibrium price is the price for which supply equals demand).
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Business and Finance.
A demand equation (sometimes called a demand curve) shows how much money people would pay for a product depending on how much that product is available on the open market. Often, the demand equation is found empirically (through experiment, or market research).
The demand equation for a certain type of printer is given by:
D= -200p + 35,000
The supply equation is predicted to be:
A). Does the graph of the supply equation open up or down::::Down
How did you determine this:::The coefficient of p^2 is negative.
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B). What is the point of the vertex of the supply equation?
x = -b/2a = -400/(-2) = 100 ; S(100) = -10000 + 40000 - 20000
= 10,000
Vertex: (100,10,000)
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C). How many solutions are there to the supply equation? How do you know?
Ans: Two ; it is a quadratic.
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D). Find the equilibrium price (Hint: The equilibrium price is the price for which supply equals demand).
D = S
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-200p + 35,000 = -p^2 +400p - 20000
p^2 -600p +55000 = 0
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I graphed it and found:
p = 112.92 or p = 487.08
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Cheers,
Stan H.
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