Question

recommend remote connections, especially the internet connection at the local coffee shop. i will give you access to the full review mode (right/wrong answers) to the quiz on the due date.

question 18 1 pts

your instructor gives you two equations:

1. q = 40 + 2p and 2) q = 100 - 4p.

what types of curves are 1) and 2)?

equation 1) is the demand curve whereas equation 2) is the supply curve
both are supply curves
equation 1) is the supply curve whereas equation 2) is the demand curve
both are demand curves

Explanation:

To determine the type of curves (supply or demand), we analyze the relationship between quantity (\(Q\)) and price (\(P\)):

• Supply Curve: Typically, quantity supplied (\(Q_s\)) increases with price (\(P\)), so the slope of \(Q\) with respect to \(P\) is positive (e.g., \(Q = a + bP\) where \(b>0\)).
• Demand Curve: Typically, quantity demanded (\(Q_d\)) decreases with price (\(P\)), so the slope of \(Q\) with respect to \(P\) is negative (e.g., \(Q = c - dP\) where \(d>0\)).

For Equation 1: \(Q = 40 + 2P\), the slope of \(Q\) with respect to \(P\) is \(+2\) (positive), so it follows the supply curve pattern.
For Equation 2: \(Q = 100 - 4P\), the slope of \(Q\) with respect to \(P\) is \(-4\) (negative), so it follows the demand curve pattern.

Answer:

C. Equation 1) is the supply curve whereas equation 2) is the demand curve