ECO 550

Graphing Question - Answer

Graphing Supply and Demand- Sample Problem
Based on the demand and supply functions below:
1.     Generate the numbers for Quantity Demanded and Quantity Supplied and enter them a table.
2.     Plot the information on a graph
3.     Show the point of equilibrium on the graph.
4.     Solve algebraically for equilibrium price and quantity
The Market for Corn
Demand Function: Qd = 2000 - 10P
Supply Function: Qs = -1000 + 20P
Answer
Price	Quantity Demanded	Quantity Supplied
60	1400	200
70	1300	400
80	1200	600
90	1100	800
100	1000	1000
110	900	1200
120	800	1400
130	700	1600
140	600	1800
150	500	2000
Algebraic solution
Qd = Qs
2000 - 10P = -1000 + 20P
3000 = 30P
100 = P (Equilibrim price)
Qd = 2000 - 10(100) = 1000 (Equilibrium quantity)
Qs = -1000 + 20(100) = 1000 (Equilibrium Quantity)

The Market for Corn

Demand 1400.0 1300.0 1200.0 1100.0 1000.0 900.0 800.0 700.0 600.0 500.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0 Supply 200.0 400.0 600.0 800.0 1000.0 1200.0 1400.0 1600.0 1800.0 2000.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0

Quantity

Price