Question: Free market. The equations

express the supply S and the demand D, respectively, for a popular compact disc brand in terms of its price x (in dollars).

a) Graph the equations on the same coordinate system.

b) What happens to the supply as the price increases?

c) What happens to the demand as the price increases?

d) The price at which supply and demand are equal is called the equilibrium price. What is the equilibrium price?

a)

b) The supply increases as the price increases

c) The demand decreases as the price increases

d) (Hint: Solve the System of Equations to find the equilibrium price)