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## Problema Solution

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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