Question

The Catalog Store has data indicating that, when the price of a CD bookcase is $137, the demand quantity is 56 and the supply quantity is 80. The equilibrium point occurs when the price is $119 and the quantity is 72. Find the linear demand equation p. (Let x be the demand quantity.) Find the linear supply equation p. (Let x be the supply quantity.)

Answer 1

Answer:

• demand: p = -9/8x +200
• supply: p = 9/4x -43

Step-by-step explanation:

The 2-point form of the equation for a line can be used as a starting place for writing these equations. For dependent variable p and independent variable x, it will be ...

  p = (p2 -p1)/(x2 -x1)(x -x1) +p1

a) Two points on the demand curve are (x, p) = (56, 137) and (72, 119). Then the equation is ...

  p = (119 -137)/(72 -56)(x -56) +137

  p = -18/16(x -56) +137

  p = -9/8x +200

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b) Two points on the supply curve are (x, p) = (80, 137) and (72, 119). Then the equation is ...

  p = (119 -137)/(72 -80)(x -80) +137

  p = -18/-8(x -80) +137

  p = 9/4x -43