Concept explainers
a.
To graph: Plot the graph of C= 0. 3x +3.5
And R = 0. 5x
a.
Explanation of Solution
Given Information:To Plot the graph of S= 0. 3p +3 and D = -0. 5p + 9on the same coordinate plane taking S and D on vertical axis and pon horizontal axis.
Graph:
Interpretation: In the graph above, the red-colored line is the plot of S= 0. 3p +3
And the blue coloured line is the plot of D = -0. 5p +9
b.
To Find: The price at which D=S (Equilibrium Price).
b.
Answer to Problem 19P
The price at which D=S is$7.5
Explanation of Solution
Given Information: It is given that
S= 0. 3p +3 .........(1)
And Demand (in thousands of units) is given by
D= -0. 5p + 9 .........(2)
Calculation: Since it is given that D=S
So , 0. 3p +3 = -0. 5p + 9
Or 0. 8p = 6
p = 7.5
c.
To Find:The effect when prices greater than the equilibrium price
c.
Answer to Problem 19P
At the prices greater than this price, the supply will become greater than demand.
Explanation of Solution
Given Information: It is given that S= 0. 3p +3 and D= -0. 5p+ 9
Calculation: We can see from the graph plotted in subpart (a) that the supply is greater than the demand when the price exceeds the equilibrium price.
And when the supply exceeds the demand it becomes a situation of economic surplus.
Chapter 3 Solutions
Algebra and Trigonometry: Structure and Method, Book 2
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