MATH 121 DISCUSSION WEEK 3 WORKSHEET 1) An economic consultant has done some analysis for a manufacturer of headlamps. She has determined that about 7,000 headlamps can be produced if the market price is $5.50 while 35,000 headlamps can be produced if the market price is $17.50. Further, based on market surveys, she also found that the demand for headlamps can best be ﬁtted by the equation: 6 P + 4 Q = 107 (where P is price and Q is headlamps in thousands). (1) The demand equation is written above in standard form. Rewrite it in slope-intercept form, expressing P in terms of Q. (2) Assuming a linear supply curve, determine the equation for the supply of headlamps. Express your answer in slope-intercept form with P in terms of Q. (3) Find the equilibrium quantity and equilibrium price of headlamps. (4) The company has invested in new machinery that makes it possible to produce 14,000 headlamps if the market price is $7.00. Suppose that the new supply curve is parallel to the supply curve we calculated in part (2). What is the equation of the new supply
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This note was uploaded on 12/07/2010 for the course MATH Math 121 taught by Professor Beaulieu during the Fall '10 term at UMass (Amherst).