The goal is to find supply and demand equations using some given informations and then use the equations to find equilibrium point. After doing some market research, a manufacturer notices the following pattern for selling an item.
Supply
Price Supply
1 dollar 600 units
4 dollars 4200 units
6 dollars 6600 units
9 dollars 10200 units
Demand
Price Demand
1 dollar 3600 units
4 dollars 900 units
6 dollars 600 units
9 dollars 400 units
Notice that for the supply, as the price goes up, the number of items goes up too.
This is so because it will cost the manufacturer more money to produce more items.
However, for the demand, as the price goes up, the number of items goes down.
People have a tendency to buy less when the price goes up.
s = 1200p + -600
The equilibrium point is the price at which the supply is equal to the demand
Mar 13, 19 11:50 AM
Learn how to derive the equation of an ellipse when the center of the ellipse is at the origin.
Basic math formulas
Algebra word problems
New math lessons
Your email is safe with us. We will only use it to inform you about new math lessons.
Recommended
Scientific Notation Quiz
Graphing Slope Quiz
Adding and Subtracting Matrices Quiz
Factoring Trinomials Quiz
Solving Absolute Value Equations Quiz
Order of Operations Quiz
Types of angles quiz
Mar 13, 19 11:50 AM
Learn how to derive the equation of an ellipse when the center of the ellipse is at the origin.