SUPPLY-AND-DEMAND APPLICATIONS                                                                           SHEET 2

Application 1 – Continued

Use your graph from sheet 1 to answer the questions that follow.

1. Using a graph

1. If King sets the price at $2.50 per doll, how many disappointed customers will each store have during the week?
2. If King sets the price at $3.80 per doll, how many unsold dolls will remain at each store at the end of a week?
3. According to this graph, if the company could give the dolls away, how many would each store need per week?
4. According to this graph, what price would make the doll supply so tight that the average number available to each store would be zero?
5. Estimate the price where supply and demand will be in equilibrium.

2. Using equations

1. Use two of the points given to find the equation for supply (S) as a function of price (P).
2. Use two of the points given to find the equation for demand (D) as a function of price (P).
3. Solve the system of supply-and-demand equations to find the price in exact equilibrium. How does this price compare with your answer in question 5 above?

Application 2

The data provided in the table below show the supply and demand for game cartridges at a toy warehouse.

Price	Supply	Demand
$20	150	500
$30	250	400
$50	450	200

1. Find the supply equation.
2. Find the demand equation.
3. Find the price in equilibrium.

                                                                                                 From the Mathematics Teacher, October 1991