Consider the following model of supply and demand. P = 6 – 3Q P = 1 + 2Q (a) Identify the demand function and describe it in terms of gradient and intercept. (b) Using algebra find the single combination of P and Q that satisfies both of these equations and interpret in economic terms. (c) Roughly sketch these two functions on the same graph. (d) Show the values of P and Q where the functions cross the axes and clearly label the point of intersection.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
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Please help solve following qeuestion a,b and c, please show full working out. Thank you

Consider the following model of supply and demand.
P = 6 – 3Q
P = 1 + 2Q
(a) Identify the demand function and describe it in terms of gradient and intercept.
(b) Using algebra find the single combination of P and Q that satisfies both of these
equations and interpret in economic terms.
(c) Roughly sketch these two functions on the same graph.
(d) Show the values of P and Q where the functions cross the axes and clearly label the point
of intersection.
Transcribed Image Text:Consider the following model of supply and demand. P = 6 – 3Q P = 1 + 2Q (a) Identify the demand function and describe it in terms of gradient and intercept. (b) Using algebra find the single combination of P and Q that satisfies both of these equations and interpret in economic terms. (c) Roughly sketch these two functions on the same graph. (d) Show the values of P and Q where the functions cross the axes and clearly label the point of intersection.
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