Answer to Question #68892 in Microeconomics for Tansi

Question

Here is the daily demand schedule and supply schedule of a cup of small latte in a local coffee shop:
Price ($) Demanded quantity (#) Supplied quantity (#)
6 0 1000
5 200 800
4 400 600
3 600 400
2 800 200
1: 1000 0
Give the coefficients in the equations for demand and supply: Qd = a+ bp and Qs = alpha a + alpha bp (the p is not alpha only a and b) find a, b, alpha a, alpha b

Answer 1

0=a+b*6
200=a+b*5

-200=b
a=1200

0=alpha a+1*alpha b
200=alpha a+2*alpha b

-200=-alpha b
alpha b=200
alpha a =-200