Question 892984: A manufacturer of toy dolls can supply 2000 dolls if the dolls are sold for $8 each, but he can supply only 800 dolls if the dolls are sold $2 each. If x represents the price of the dolls and y the number of items, write an equation for the supply curve.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A manufacturer of toy dolls can supply 2000 dolls if the dolls are sold for $8 each, but he can supply only 800 dolls if the dolls are sold $2 each. If x represents the price of the dolls and y the number of items, write an equation for the supply curve.
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You have 2 points:: (8,2000) and (2,800)
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slope = (2000-800)/(8-2) = 1200/6 = 200
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Form:: y = mx + b
Solve for "b"::
800 = 200*2 + b
b = 400
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Equation:
y = 200x + 400
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Cheers,
Stan H.
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