Question #60 on Ch 4.1
Topic: Q60 on 4.1
Hello Class:
As promised, here is the response to question number 60.
Let x be the supply per pound, and p be the price per pound.
Now, from the question:
at $2.13 per bushel, the supply is 8.9 and the demand is 6.5.
So that translate to:
(x,p)
for supply: (8.9, 2.13) and for demand: (6.5, 2.13)
down to:$1.50 for supply 8.2, and demand 7.4.
for supply: (8.2,1.5) demand (7.4, 1.5)
Put all the supply coordinate together:
(8.9,2.13) and (8.2,1.5)
Now, find the slope of the price supply:
m= (2.13-1.5) / (8.9-8.2) = .9
Now use the point slope equation from math 130 or 110:
(y-2.13) =0.9(x-8.9) solve interm of y:
y= .9x-5.88
Put all the price demand coordinate together:
(6.5, 2.13) and (7.4,1.5)
find the slope of demand:
m= (2.13-1.5) /(6.5-7.4) = -0.7
use the point slope formula:
(y-1.5) = -0.7(x-7.4) and solve interm of y:
y= -.7x+6.68
I will present the graph in class. Hope this answer your question.