Question 304651
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:
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Graph of Supply:
{{{graph(400,300,-10,50,-10,10000,4000+200x)}}}
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Graph of Demand:
{{{graph(400,300,-10,50,-10,10000,9000-100x)}}}
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What happens to the supply as price increases? increases
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Why do you think this happens? the slope is positive 200
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What happens to the demand as price increases? decreases 
Why? the slope is negative 100
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The price at which supply and demand are equal is called the Equilibrium Price. Calculate it for this example.
4000+200x = 9000-100x
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300x = 5000
x = 50/3 = $16.67
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Cheers,
Stan H.