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 Pe and quantity Qe for each model algebraically; and

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

(a) (1) For the economic model,

(2) For the mathematical model,

(c) The economic graph with Q on the x axis and P on the y axis is found in Fig. 4-23(a). The mathematical graph with P on the x axis and Q on the y axis is found in Fig. 4-23(b).

Transcribed Image Text:

Supply: 10P-8Q = 50 (4.72)