Here is a real example based on statistical studies of data from 1981, which relates the price of wheat (in dollars per bushel) to its supply and demand quantities (in millions of bushels per year): QS =1800+240P QD=3550−266P (a) Sketch the curves in Desmos and find the equilibrium price and quantity (include units). (b) Solve the system above to exactly determine the equilibrium point. Does your solution agree with the one you found in the previous part?
Equations and Inequations
Equations and inequalities describe the relationship between two mathematical expressions.
Linear Functions
A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.
On the previous page, you probably wrote you equations in the form P = a+bQ. Economists often write the supply and demand equations in the form Q = c+dP. Here is a real example based on statistical studies of data from 1981, which relates the price of wheat (in dollars per bushel) to its supply and demand quantities (in millions of bushels per year):
QS =1800+240P QD=3550−266P
(a) Sketch the curves in Desmos and find the equilibrium price and quantity (include units).
(b) Solve the system above to exactly determine the equilibrium point. Does your solution agree with the one you found in the previous part?
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