SOLUTION: 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
Algebra ->
Inequalities
-> SOLUTION: 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
Log On
Question 304651: 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:
What happens to the supply as price increases? Why do you think this happens?
What happens to the demand as price increases? Why?
The price at which supply and demand are equal is called the Equilibrium Price. Calculate it for this example.
You can put this solution on YOUR website! 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:
---
Graph of Supply:
-----------------------
Graph of Demand:
------------------------
What happens to the supply as price increases? increases
---
Why do you think this happens? the slope is positive 200
----
What happens to the demand as price increases? decreases
Why? the slope is negative 100
----
The price at which supply and demand are equal is called the Equilibrium Price. Calculate it for this example.
4000+200x = 9000-100x
---
300x = 5000
x = 50/3 = $16.67
=====================
Cheers,
Stan H.
(