home1 - EC 1, Section 1 UCLA Winter, 2003 A. Bresnock...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EC 1, Section 1 Student Name: UCLA TA Name/Section: Winter, 2003 A. Bresnock Homework Assignment 1 (15 points) In Eriador the demand for swords is P = 120 - 3 Qd, and the supply is P = 5 Qs, where P is the price (in guildings = an imaginary unit of currency) per sword, Qd is the quantity of swords demanded per year, and Qs the number of swords supplied per year (in millions). 1. (a) Graph the demand and supply functions for swords in the graph space below being careful to label all axes and relationships. (b) Offer a brief interpretation of the slope of the demand for swords equation? (c) Offer a brief interpretation of what the supply of swords equation indicates. (d) The equilibrium price of swords would be shown graphically at the intersection point of the supply and demand for swords. What is the equilibrium price of swords (in guildings)? What is the equilibrium quantity of swords produced (in millions)? Show your work numerical solution below and insert your answer into
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

home1 - EC 1, Section 1 UCLA Winter, 2003 A. Bresnock...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online