Question

suppose the daily demand for soda is given by p = 4-(2/3)q and the daily supply of soda is given by p = 1+(1/3)q, where p is the dollar price of a can of soda and q is the number of cans of soda (in thousands). a. sketch the demand curve and the supply curve. instructions: use the tools provided to draw the demand and supply curves. plot each end point (4 points total). market for soda price ($/can) quantity (1,000s of cans per day)

Explanation:

Step1: Find demand - curve endpoints

For the demand curve $P = 4-\frac{2}{3}Q$. When $Q = 0$, $P=4$ (the price - intercept). When $P = 0$, we solve $0=4-\frac{2}{3}Q$, then $\frac{2}{3}Q = 4$, and $Q = 6$. So the endpoints of the demand curve are $(0,4)$ and $(6,0)$.

Step2: Find supply - curve endpoints

For the supply curve $P = 1+\frac{1}{3}Q$. When $Q = 0$, $P = 1$ (the price - intercept). When $P=0$, we solve $0 = 1+\frac{1}{3}Q$, then $\frac{1}{3}Q=-1$, $Q=- 3$. But in the context of quantity, we usually start from $Q = 0$. Another way is to find the equilibrium point later and use it as an endpoint. Let's find the equilibrium first. Set $4-\frac{2}{3}Q=1+\frac{1}{3}Q$. Combine like terms: $4 - 1=\frac{1}{3}Q+\frac{2}{3}Q$, $3 = Q$. Substitute $Q = 3$ into the supply equation, $P=1+\frac{1}{3}\times3=2$. So an endpoint of the supply curve starting from $Q = 0$ is $(0,1)$ and the other can be $(3,2)$.

Step3: Plot the curves

Plot the points $(0,4)$ and $(6,0)$ for the demand curve and connect them with a straight - line. Plot the points $(0,1)$ and $(3,2)$ for the supply curve and connect them with a straight - line.

Answer:

To sketch the demand curve, plot the points $(0,4)$ and $(6,0)$ and draw a line through them. To sketch the supply curve, plot the points $(0,1)$ and $(3,2)$ and draw a line through them.