Suppose the individual demand equation for bananas is `Q_d= 50 - 10P_x`  and the individual supply equation is expressed as `Q_s= 10P_x.` a. Construct a demand and supply schedule. b. On the same set of axes, graph the demand and supply curve. c. Determine the equilibrium point graphically and mathematically.

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c. The simplest part is finding the equilibrium point "mathematically" (it is better to say "algebraically"). For this, we have to equate `Q_d` and `Q_s:` `50-10P_x = 10P_x.` This is a simple linear equation that becomes `50 = 20 P_x` and `P_x = 2.5` (units are probably $/kg). The supply and demand are both equal to `25` at this point. We obtain the same result looking at a graph.

b. The graphs are simple, too. They are both straight lines. Please look at this link:

a. The schedule is simply a table that lists some possible price (`P_x`) values and the corresponding `Q_d` and `Q_s` values. We may choose the step between the `P_x` values. Let it be 1 $/kg:

`P_x`    `Q_d`    `Q_s`

  1       40      10

  2       30      20

  3       20      30

  4       10      40

You can extend this table with `P_x` values 0.5, 1.5 and so on.

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