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

Expert's answer

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

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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