Changes

== Questions on Prior Weeks' Homework: ==

== Questions on Prior Weeks' Homework: ==

Question two in [[Economics Lecture Two|assignment two]] says: "Suppose the price demand curve is P=$20-Q, where P is price and Q is quantity.  Also suppose the price supply curve is P=$4+Q.  At what price and quantity will the good be sold?"  The [[Economics Lecture Two|lecture]] does not address how to work with these equations.  Are we supposed to graph them using the price as the slope and Q as the y intercept? ~ [[User:SharonS|SharonS]] 17:55, 16 February 2007 (EST)

Question two in [[Economics Lecture Two|assignment two]] says: "Suppose the price demand curve is P=$20-Q, where P is price and Q is quantity.  Also suppose the price supply curve is P=$4 Q.  At what price and quantity will the good be sold?"  The [[Economics Lecture Two|lecture]] does not address how to work with these equations.  Are we supposed to graph them using the price as the slope and Q as the y intercept? ~ [[User:SharonS|SharonS]] 17:55, 16 February 2007 (EST)

:Sharon, we can expect the good to be sold where supply equals demand.  If supply were greater than demand, then the price would be lowered to sell the surplus.  If supply were less than demand, then the price would be raised to increase profits.

:Sharon, we can expect the good to be sold where supply equals demand.  If supply were greater than demand, then the price would be lowered to sell the surplus.  If supply were less than demand, then the price would be raised to increase profits.