Graph the supply and demand curves of
Qd=500 - 2P and Qs = -100 + 3P
Graph the supply and demand curves of
Qd=500 - 2P and Qs = -100 + 3P in excel
To graph the supply and demand curves, we first need to understand the equations provided.
In this case, we have two equations: Qd = 500 - 2P (demand) and Qs = -100 + 3P (supply).
Qd represents the quantity demanded, which is a function of price (P) in the demand curve equation. Qs represents the quantity supplied, which is a function of price (P) in the supply curve equation.
To graph these equations, we'll create a coordinate system with the vertical axis representing quantity (Q) and the horizontal axis representing price (P).
To start, let's plot the demand curve (Qd = 500 - 2P), by assigning values to P and calculating the corresponding Qd. We will choose a range of values for P, such as 0, 10, 20, 30, and 40.
When P = 0, Qd = 500 - 2(0) = 500.
When P = 10, Qd = 500 - 2(10) = 500 - 20 = 480.
When P = 20, Qd = 500 - 2(20) = 500 - 40 = 460.
When P = 30, Qd = 500 - 2(30) = 500 - 60 = 440.
When P = 40, Qd = 500 - 2(40) = 500 - 80 = 420.
Plot these points on the graph, and connect them to form a downward-sloping demand curve.
Next, let's plot the supply curve (Qs = -100 + 3P), using a similar process. Assign P values and calculate the corresponding Qs. Again, we will choose values such as 0, 10, 20, 30, and 40.
When P = 0, Qs = -100 + 3(0) = -100.
When P = 10, Qs = -100 + 3(10) = -100 + 30 = -70.
When P = 20, Qs = -100 + 3(20) = -100 + 60 = -40.
When P = 30, Qs = -100 + 3(30) = -100 + 90 = -10.
When P = 40, Qs = -100 + 3(40) = -100 + 120 = 20.
Plot these points on the graph and connect them to form an upward-sloping supply curve.
Once both curves are plotted, you will notice that they intersect at a certain point. This intersection is the equilibrium point where the quantity demanded is equal to the quantity supplied.