Demand:
price quantity q(p)
p q
1 110
2 50
linear function:
q - 110 110 - 50
---------- = --------------
p - 1 1 - 2
q - 110
----------- = - 60
p - 1
q - 110 = - 60 (p - 1)
q - 110 = -60p + 60
q = - 60p + 170
Answer: demand equation: q(p) = 170 - 60p
Supply
price quantity
p q
1 50
2 110
linear function
q - 50 110 - 50
--------- = --------------
p - 1 2 - 1
q - 50
-------- = 60
p - 1
q - 50 = 60 (p - 1)
q - 50 = 60p - 60
q = 60p - 60 + 50
q = - 10 + 60 p
Answer: supply q(p) = - 10 + 60p
Price at which there is neither a surplus nor a shortage => equilibrium price
=> demand = supply
=> 170 - 60p = -10 + 60p
=> 60p + 60p = 170 + 10
120p = 180
p = 180 / 120 = 1,50
Answer: at $ 1,50
Y- mx+c
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