Given the following linear supply and demand equations in standard form

(a) convert them to the slope-intercept form in a manner conformable to (1) economic modeling and (2) mathematical modeling;

(b) find the equilibrium price and quantity Pe and Qe for each model algebraically; and

(c) graph both sets of equations to find Pe and Qe.

(a) (1) Since economists consider P = f(Q), the slope-intercept forms are found by solving each equation for P in terms of Q. Solving (4.66) for P in terms of Q,

Solving (4.67) for P in terms of Q,

Transcribed Image Text:

Supply: 7P + 14Q = -42 (4.66)