EconEdLink - Using Systems of Equations with Supply and Demand Application

Using Systems of Equations with Supply and Demand Application

Time: 60 mins,

Updated: April 11 2022,

Students will be able to:

Define supply, demand, law of demand, and equilibrium.
Construct a supply and demand graph.
Compute the equation of a linear demand curve.
Compute the equation of a linear supply curve.
Compute the intersection of the supply curve and demand curve (confirm the equilibrium price and quantity) using a system of equations.

Which statement best describes the relationship between price and quantity supplied?
1. As the price of a good increases, the quantity supplied decreases.
2. [As the price of a good increases, the quantity supplied increases.]
3. As the price of a good decreases, the quantity supplied increases.
4. As the price of the good decreases, the quantity supplied remains unchanged.
What is the formula for the equation of a line?
2. b = mx -y
3. [y = mx + b]

Given the following two equations, find where they intersect (equilibrium point): d(x) = -.25x +480 and s(x) = .95x
1. Quantity = 380 and Price = 400
2. [Quantity = 400 and Price = 380]
3. Quantity = 200 and Price = 380
4. Quantity = 380 and Price = 200
Distribute a copy of Activity 4 to each student. Instruct students to use the data to graph the supply and demand curves, find the equations of the lines, and use the system of equations to confirm the equilibrium point. Grade student work using Activity 4 Answer Key.

Subjects:

Economics,Math

Using Systems of Equations with Supply and Demand Application