Hey there! Sign in to join this conversationNew here? Join for free
x Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    Can i get some help please.

    The quantity demanded of a brand of food processors is 6000 per week when the unit price is $970. Every $40 change in price results in an inverse change in the quantity demanded by 500 units. The suppliers will not market any food processors if the unit price is $600 or less, but are willing to supply 5000 units per week at a unit price of $1050 . If both the supply and demand curve are known to be linear:
    i. Derive the demand curve.
    ii.Derive the supply curve.
    iii. Estimate the equilibrium quantity and price for food processors.
    • PS Reviewer
    Offline

    20
    ReputationRep:
    PS Reviewer
    (Original post by Tay')
    Can i get some help please.

    The quantity demanded of a brand of food processors is 6000 per week when the unit price is $970. Every $40 change in price results in an inverse change in the quantity demanded by 500 units. The suppliers will not market any food processors if the unit price is $600 or less, but are willing to supply 5000 units per week at a unit price of $1050 . If both the supply and demand curve are known to be linear:
    i. Derive the demand curve.
    ii.Derive the supply curve.
    iii. Estimate the equilibrium quantity and price for food processors.
    You're just plotting a graph. They're straight line (linear).
    For demand, you know that demand is 6000 when price is 970, and if price changes by 40 then demand changes by 500. So you can then work out a second point and draw a straight line between them.
    For supply, you've been given two points and can again draw the line on your graph.
    • Thread Starter
    Offline

    2
    ReputationRep:
    (Original post by Juno)
    You're just plotting a graph. They're straight line (linear).
    For demand, you know that demand is 6000 when price is 970, and if price changes by 40 then demand changes by 500. So you can then work out a second point and draw a straight line between them.
    For supply, you've been given two points and can again draw the line on your graph.
    They want us to solve using simultaneous equations.

    Would the equations be
    970=a+6000b
    1010=a+5500b
    for the demand curve
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: February 20, 2018
Poll
Do you like carrot cake?
Useful resources

Make your revision easier

Maths

Maths Forum posting guidelines

Not sure where to post? Read the updated guidelines here

Equations

How to use LaTex

Writing equations the easy way

Student revising

Study habits of A* students

Top tips from students who have already aced their exams

Study Planner

Create your own Study Planner

Never miss a deadline again

Polling station sign

Thinking about a maths degree?

Chat with other maths applicants

Can you help? Study help unanswered threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.