Demand Function P =100 - 0.5 Q

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Label the horizontal and vertical axis Calculate the demand schedule from the equation given above, for positive values of P and Q Plot the points Draw the graph Label the graph. Demand Function P =100 - 0.5 Q. Table 2.3 Demand schedule Q P = 100 - 0.5 Q

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Presentation Transcript
Label the horizontal and vertical axis

Calculate the demand schedule from the equation given above, for positive values of P and Q

Plot the points

Draw the graph

Label the graph

Demand Function P =100 - 0.5Q

Table 2.3 Demand schedule

QP = 100 - 0.5Q

0P = 100 -0.5(0) = 100

40 P = 100 -0.5(40) = 80

80 P = 100 -0.5(80) = 60

120P = 100 -0.5(120) = 40

160P = 100 -0.5(160) = 20

200P = 100 -0.5(200) = 0

Intercept (vertical) = 100:

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Calculate the demand schedule (Method A)

P on the vertical (y)axis

Q on the horizontal (x) axis

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

Q

Quantity

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

Q

Quantity

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

Q

Quantity

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

12040

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

Price

P

120

100

80

60

40

20

Q

Quantity

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

16020

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

Quantity

Q

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

0

Q

Quantity

0

40

80

120

160

200

240

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Plot the demand schedule

P =100 - 0.5Q

P

Price

120

100

80

60

40

20

Q

Quantity

0

0

40

80

120

160

200

240

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Join the points and label the graph

P =100 - 0.5Q

P

Price

120

100

80

P

= 100 - 0.5

Q

60

40

D

: Demand

20

Q

Quantity

0

0

40

80

120

160

200

240

Figure 2.17

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Alternatively, plot the vertical intercept (Method B)

P

Price

120

Vertical intercept = 100

100

80

60

40

20

Quantity

0

Q

40

80

120

160

200

240

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

and plot the horizontal intercept

120

Vertical intercept = 100

100

80

60

Horizontal intercept = 200

40

20

Q

Quantity

0

0

40

80

120

160

200

Table 2.3 Demand schedule

Quantity (x) Price (y)

0 100

40 80

80 60

120 40

160 20

200 0

Intercept (vertical) = 100

Slope = - 0.5:

Horizontal intercept = 200

Demand Function P =100 - 0.5Q :

Join the horizontal and vertical intercepts

Join the horizontal and vertical intercepts

P

Price

120

100

80

60

: Demand

D

40

20

Q

Quantity

0

0

40

80

200

120

160

240

Figure 2.19

a

200

b

The General Linear Demand function such as

P = a - bQ

P = 100 - 0.5Q

P

120

a = 100

Slope = -

= - 0.5

b

100

D

80

P

= 100 - 0.5

Q

60

40

20

Q

0

0

200

40

80

120

160

240

Figure 2.19 Demand function,

P

= 100 - 0.5

Q

Table 2.4 Supply schedule

Q: Quantity P: P = 10 +0.5Q

0 10: P =10 +0.5(0)

20 20: P = 10+0.5(20)

40 30

60 40

80 50

100 60

Intercept (vertical) = 10

Slope = 0.5

Horizontal intercept = - 20

P = 10 + 0.5Q

Supply Function P = 10 + 0.5QCalculate and plot the supply schedule P = 10 + 0.5Q

P

S

P

= 10 + 0.5

Q

Slope = 0.5

c

= 10

Q

Figure 2.22

NOTE: the supply function may be plotted by simply joining the intercepts