Question: [DEMAND/SUPPLY]. Assume a linear relationship exists between the market price " p "

of a particular product (product R ), and the number of product units " q " (1)

consumers will "demand" and (2) producers will "supply". Market research related

to this product during the past two sales periods provides the following information…

Unit Price "p" DEMAND "qd" SUPPLY "qs"

Period 1 $ 500 956 units 131 units

Period 2 $2,760 504 units 922 units

1. [ 4 ] Use the "two-point" approach to develop linear models in the form q = f ( p ) to
   represent this product’s DEMAND and SUPPLY functions.
2. [ 4 ] Use the Chart Wizard feature of Excel to plot data points for the DEMAND and
   SUPPLY models for this product on the same graph. Then use a trend line to
   represent each set of data points, and indicate the trend line’s equation.
3. [ 2 ] At a unit price " p " of $ 900 , estimate (1) " q _d " and (2) " q _s ".
4. [ 4 ] Identify and interpret the slope of this product’s DEMAND and SUPPLY
   models.
5. [ 2 ] Calculate the unit price " p " at which " q _d " = " q _s " for this product.
6. [ 2 ] Verify that DEMAND " q _d " and SUPPLY " q _s " are equal at the unit price " p " for
   "market equilibrium" calculated in part "e" above.
7. [ 2 ] Derive the product’s DEMAND model in the form p = f ( q ).

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document