Question 2 Supply and Demand The price at which a company sells a particular article varies...

 

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Question 2 Supply and Demand The price at which a company sells a particular article varies with the quantity it sells. If it charges £13 per article, it sells 3000 articles; if it charges £5 per article it will sell 7000 articles. Let the quantity of articles the company sells be denoted by the variable d (measured in thousands of articles) and let the price be £p. (a) A straight line with d as the horizontal axis and p as the vertical axis passes through the points (3,13) and (7,5). Find the gradient and intercept of this line. If the price is £7.30 what is the demand? (9 marks) (b) The company decides to increase the supply of articles as the price increases. If the price is £6 it is prepared to supply 3000 articles, at a price of £11 it is prepared to supply 8000 articles. Let the supply of articles by the company be denoted by the variable s (measured in thousands of articles). Take s to be the horizontal axis and p to be the vertical axis. Obtain the equation of the straight line which represents the information above. (6 marks) (c) Assuming supply-demand, solve the linear equations from (a) and (b) simultaneously. Write your answer for the price and demand in appropriate units. (10 marks) Question 2 Supply and Demand The price at which a company sells a particular article varies with the quantity it sells. If it charges £13 per article, it sells 3000 articles; if it charges £5 per article it will sell 7000 articles. Let the quantity of articles the company sells be denoted by the variable d (measured in thousands of articles) and let the price be £p. (a) A straight line with d as the horizontal axis and p as the vertical axis passes through the points (3,13) and (7,5). Find the gradient and intercept of this line. If the price is £7.30 what is the demand? (9 marks) (b) The company decides to increase the supply of articles as the price increases. If the price is £6 it is prepared to supply 3000 articles, at a price of £11 it is prepared to supply 8000 articles. Let the supply of articles by the company be denoted by the variable s (measured in thousands of articles). Take s to be the horizontal axis and p to be the vertical axis. Obtain the equation of the straight line which represents the information above. (6 marks) (c) Assuming supply-demand, solve the linear equations from (a) and (b) simultaneously. Write your answer for the price and demand in appropriate units. (10 marks)

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Question a b Assume Equation for the line pa1b1s When s3 p6 6a1b13Equation3 Whe... View the full answer