Hi Guys!
How would you calculate the equilibrium price, given this question: http://imgur.com/Hvqbnt9
Thanks
How would you calculate the equilibrium price, given this question: http://imgur.com/Hvqbnt9
Thanks
You need to find the point of intersection.Hi Guys!
How would you calculate the equilibrium price, given this question: http://imgur.com/Hvqbnt9
Thanks
Thank you!You need to find the point of intersection.
The blue line has the equation P = -2Q + 220 (I got this by calculating the gradient and then observing that the Y intercept is 220, then used the general equation y=mx+b from Year 10) and the purple line has equation P = Q + 40.
To find the intersection, solve simultaneously.
Q + 40 = -2Q + 220
3Q = 180
Q = 60
When Q=60, we have P = 60 + 40 = 100.
So the equilibrium price is $100.
where did this come from?You need to find the point of intersection.
The blue line has the equation P = -2Q + 220 (I got this by calculating the gradient and then observing that the Y intercept is 220, then used the general equation y=mx+b from Year 10) and the purple line has equation P = Q + 40.
To find the intersection, solve simultaneously.
Q + 40 = -2Q + 220
3Q = 180
Q = 60
When Q=60, we have P = 60 + 40 = 100.
So the equilibrium price is $100.
I rearranged to the original equation.where did this come from?