Answer to Question #68892 in Microeconomics for Tansi

Question #68892
Here is the daily demand schedule and supply schedule of a cup of small latte in a local coffee shop: Price ($) Demanded quantity (#) Supplied quantity (#) 6 0 1000 5 200 800 4 400 600 3 600 400 2 800 200 1: 1000 0 Give the coefficients in the equations for demand and supply: Qd = a+ bp and Qs = alpha a + alpha bp (the p is not alpha only a and b) find a, b, alpha a, alpha b
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Expert's answer
2017-06-19T09:59:10-0400
0=a+b*6
200=a+b*5

-200=b
a=1200

0=alpha a+1*alpha b
200=alpha a+2*alpha b

-200=-alpha b
alpha b=200
alpha a =-200

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