• 100% Satisfaction Guarantee
Sandhya_sharma, Master's Degree
Category: Math Homework
Satisfied Customers: 3713
Experience:  I hold M.Sc and M.Phil degrees in math and have several years of teaching experience.
14910578
Type Your Math Homework Question Here...
Sandhya_sharma is online now

# Suppose that the supply function is

### Customer Question

Suppose that the supply function for honey is p=S(q)=0.3q+2.7, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. Suppose also that the equilibrium price is \$4.50 and the demand is 2 barrels when the price is \$6.10.
Find an equation for the demand function, assuming it is linear.
Submitted: 1 year ago.
Category: Math Homework
Expert:  Sandhya_sharma replied 1 year ago.
Hi,
Suppose that the supply function for honey is p=S(q)=0.3q+2.7, where p is the price in dollars for an 8-oz container and q is the quantity in barrels. Suppose also that the equilibrium price is \$4.50 and the demand is 2 barrels when the price is \$6.10.
Find an equation for the demand function, assuming it is linear.
Solution:
Let us find the demand when price is \$4.50
since equilibrium price is \$4.50 so supply and demand at that price will be equal.
Put p = 4.5 in p=0.3q+2.7
4.5 =0.3q+2.7
4.5-2.7 = 0.3q
1.8 = 0.3q
q = 1.8/0.3 = 6
Now we have demand is 2 barrels when the price is \$6.10 and also demand is 6 barrels when the price is \$4.5.
slope = (4.5-6.10)/(6-2) = -0.4
demand equation will be
p-6.1 = -0.4(q-2)
p-6.1 = -0.4q+0.8
p = -0.4q+6.9
demand function will be p =D(q) = -0.4q+6.9