Answer to Question #316322 in Microeconomics for Axis

Question

1. Consider the market supply curve which passes through the intercept and from which the market equilibrium data is known, this is, the price and quantity of equilibrium 𝑷𝑬=𝟓𝟎 and 𝑸𝑬=𝟐𝟎𝟎𝟎.

a. Considering those two points, find the equation of the supply.

b. Draw a graph of this line.

Answer 1

Find the slope

$(0,0) ,(2000,50)$

$\frac{50}{2000}= \frac{1}{40}$

We use the slope to obtain the equation

$\frac{1}{40}= (2000,50),(Q,P)$

$\frac{1}{40}= \frac{P-50}{Q-2000}$

$Q=40P$

The graph of the line is