Concept explainers
Market Demand This is a continuation of Exercise 13. The following table shows the quantity D of wheat, in billions of bushels, that wheat consumers are willing to purchase in a year at a prince P, in dollars per bushel.
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In economics, it is customary to plot D on the horizontal axis and P on the vertical axis, so we will think of D as a variable and of P as a function of D.
a. Show that these data can be modeled by a linear function, and find its formula.
b. Add the graph of the linear formula you found in part a, which is called the market demand curve, to your graph of the market supply curve from Exercise 13.
c. Explain why the market demand curve should be decreasing.
d. The equilibrium price is the price determined by the intersection of the market demand curve and the market supply curve. Find the equilibrium price determined by your graph in part b.
13. Market supply The following table shows the quantity S of wheat, in billions of bushels, that wheat supplies are willing to produce in a year and offer for sale at a price P, in dollars per bushel.
S
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P = price |
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In economics, it is customary to plot S on the horizontal axis and
a. Show that these data can be modeled by a linear function, and find its formula.
b. Make a graph of the linear formula you found in part a. This is called the market supply curve.
c. Explain why the market supply curve should be increasing. (Hint: Think about what should happen when the price increases.)
d. How much wheat would suppliers be willing to produce in a year and offer for sale at a price of
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Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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- Sales Barnes & Noble had annual sales of $6.8 billion in 2013 and $6.1 billion in 2015. Use the Midpoint Formula to estimate the sales in 2014. Assume that the annual sales followed a linear pattern.arrow_forwardDVD Player Sales The table shows the number of DVD players sold in a small electronics store in the years 2003-2013. Year DVD players sold 2003 495 2004 513 2005 410 2006 402 2007 520 2008 580 2009 631 2010 719 2011 624 2012 582 2013 635 aWhat was the average rate of change of sales between 2003 and 2013? bWhat was the average rate of change of sales between 2003 and 2004? cWhat was the average rate of change of sales between 2004 and 2005? dBetween which two successive years did DVD player sales increase most quickly? Decrease most quickly?arrow_forwardMarket supply The following table shows the quantity S of wheat, in billions of bushels, that wheat supplies are willing to produce in a year and offer for sale at a price P, in dollars per bushel. S = quantity of wheat P = price 1.0 1.35 1.5 2.40 2.0 3.45 2.5 4.50 In economics, it is customary to plot S on the horizontal axis and P on the vertical axis, so we will think of S as a variable and of P as a function of S. a. Show that these data can be modeled by a linear function, and find its formula. b. Make a graph of the linear formula you found in part a. This is called the market supply curve. c. Explain why the market supply curve should be increasing. Hint: Think about what should happen when the price increases. d. How much wheat would suppliers be willing to produce in a year and offer for sale at a price of 3.90 per bushel?arrow_forward
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