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Suppose that the monthly demand function of a particular commodity is given by P= 200 -0.4x and the supply function is P = 0.2x + 80 where x is the number of units demanded and supplied and P is in pesos.
a.) Determine the equilibrium prics and quantity
b.) At a unit prices of P 140, by how many unit does supply exceed demand.
c.) At a unit prices of P 90, by how many unit does demand exceed supply.
d.) Graph the demand and supply equations in the same coordinate plane.
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a. Equilibrium price
supply function= demand function
supply exceed demand= 300-150=150 unit.
c. When P =90
demand exceed supply=275-50
Red line repn. demand function and green line repn. supply function.
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