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The Problem

The demand for coffee is given by the following equation, where QD stands for the quantity demanded and P stands for price.

QD = 100 - 4P

The supply of coffee is given by the following equation, where QS stands for the quantity supplied and P stands for price.

QS = 10 + 2P

6.

value:

1 points

a. What is the slope of demand? Slope =

b. At what price is quantity demanded equal to zero? P =

c. What is the slope of supply?

Slope =

d. At what price is quantity supplied equal to zero?

P =

e. In the diagram below use the line tool to plot the demand and supply curves using the original equations and your values for the intercepts and slopes of each equation.

Answer provided by our tutors

The demand for coffee is given by the following equation, where QD stands for the quantity demanded and P stands for price.

QD = 100 - 4P

The supply of coffee is given by the following equation, where QS stands for the quantity supplied and P stands for price.

QS = 10 + 2P

Solution:

a. What is the slope of demand? Slope = -4

b. At what price is quantity demanded equal to zero? P = 25

c. What is the slope of supply?

Slope = 2

d. At what price is quantity supplied equal to zero?

P = -5

e. In the diagram below use the line tool to plot the demand and supply curves using the original equations and your values for the intercepts and slopes of each equation.

QD = QS

100-4p = 10+2p

P = 15

The intercept is (15, 40)

 

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