Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

When gas prices are $2.73 per gallon, the annual supply for gas in New York State is 135 billion gallons and the annual
demand is 141 billion gallons. When the price increases to $3.26 per gallon, the annual supply increases to 147 billion gallons and the
demand decreases to 137 billion gallons.
(a) Assuming that the supply and demand equations are linear, Ofind the supply and demand equations.
Supply Equation p =
Demand Equation p =
Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity (in billions).
The slope and y-intercept should include 3 decimal places, or be left as fractions.
(b) Find the market price and quantity.
market price p =
market quantity q =
Note: The market price and quantity should include 3 decimal places (or left as fractions), and the market price should include a dollar
sign.

Sagot :

The supply equation is p = 0.044q - 3.21.

How to compute the supply equation?

The supply will be:

p = mq + b

2.73 = 135m + b

3.26 = 147m + b

Subtract both equations

12m = 0.53

m = 0.53/12

m = 0.044

We'll substitute it and this will be:

2.73 = 135m + b

2.73 = 135(0.044) + b

2.73 = 5.94 + b

b = -5.94 + 2.73 = -3.21

The supply equation will be

p = mq + b

p = 0.044q - 3.21

The demand equation will be:

2.73 = 141m + b

3.26 = 137m + b

Subtract the equations

4m = -0.53

m = -0.1325

2.73 = 141m + b

2.73 = 141(-0.1325) + b

b = 2.73 + 18.68

b = 21.41

The demand equation will be

p = -0.1325q + 21.41.

The equilibrium condition will be:

0.044q - 3.21 = -0.1325q + 21.41.

0.044q + 0.1325q = 21.41 + 3.21

0.1765q = 24.62

q = 140

Equilibrium quantity = 140

The market price will be:

p = 0.044q - 3.21

p = 0.044(140) - 3.21

p = 2.95

The market price is 2.95.

Learn more about supply equation on:

brainly.com/question/17203853

#SPJ1

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.