supply - price equation

tclose

New member
Joined
Apr 3, 2011
Messages
2
I'm not understanding this formula. Where am I going wrong? thanks

price: 2.27
supply: 7200

price: 2.36
supply: 7600

m = (y2 - y1)/(x2 - x1)

m = (2.36 - 2.27)/(7600-7200) = 0.09/400

m = 0.000225

applying math book formula:

P - P1 = m(x - x1)
P - 2.36 = 0.000225(x - 7600)
P - 2.36 = 0.000225x - 7.599
P = -5.2239
 

Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,634
tclose said:
price: 2.27
supply: 7200

price: 2.36
supply: 7600
Look at it as 2 points: A(7200, 2.27) and B(7600, 2.36)

For "appearance on graph" purposes, you could change the 2.27 to 2270 and the 2.36 to 2360,
OR the 7200 to 72 and the 7600 to 76 ; get my drift?
 

mmm4444bot

Super Moderator
Staff member
Joined
Oct 6, 2005
Messages
10,254


What are the instructions that came with this exercise?

 
Top