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1Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Demand Function P =100 - 0.5Q
Label the horizontal and vertical axis Calculate the demand schedule from the equation
given above, for positive values of P and Q Plot the points Draw the graph Label the graph
2Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand schedule
Q P = 100 - 0.5Q 0 P = 100 -0.5(0) = 100
40 P = 100 -0.5(40) = 80
80 P = 100 -0.5(80) = 60
120 P = 100 -0.5(120) = 40
160 P = 100 -0.5(160) = 20
200 P = 100 -0.5(200) = 0
Intercept (vertical) = 100:
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Calculate the demand schedule (Method A)
P on the vertical (y) axis
Q on the horizontal (x) axis
3Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
P =100 - 0.5Q
QuantityQ
Price P
0
20
40
60
80
100
120
0
40 80
120
160
200
4Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
P =100 - 0.5Q
Quantity Q
PriceP
0
20
40
60
80
100
120
0 40 80 120
160
200
5Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
120
160
200
P =100 - 0.5Q
QuantityQ
Price P
0
20
40
60
80
100
120
0 40 80
6Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
P =100 - 0.5Q
Quantity Q
Price P
0
20
40
60
80
100
120
0
40 80 120
160
200
7Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
P =100 - 0.5Q
QuantityQ
Price P
0
20
40
60
80
100
120
0
40 80 120
160
200
8Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
P =100 - 0.5Q
Quantity Q
PriceP
0
20
40
60
80
100
120
0
40 80 120
160
200
240
9Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Plot the demand schedule
Quantity
P =100 - 0.5Q
Q
Price P
0
20
40
60
80
100
120
0
40 80 120
160
200
240
10Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Join the points and label the graph
P =100 - 0.5Q
Quantity Q
PriceP
: Demand
P = 100 - 0.5Q
D
0
20
40
60
80
100
120
0
40 80 120
160
200
240
Figure 2.17
11Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Alternatively, plot the vertical intercept (Method B)
Q Quantity
Price
P
0
20
40
60
80
100
120
40 80
120
160
200
240
Vertical intercept = 100
12Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
and plot the horizontal intercept
QuantityQ0
20
40
60
80
100
120
0
40 80 120
160
200
Horizontal intercept = 200
Vertical intercept = 100
13Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Table 2.3 Demand scheduleQuantity (x)Price (y)
0 100
40 80
80 60
120 40
160 20
200 0
Intercept (vertical) = 100
Slope = - 0.5:
Horizontal intercept = 200
Demand Function P =100 - 0.5Q :
Join the horizontal and vertical intercepts
Figure 2.19
Join the horizontal and vertical intercepts
QuantityQ
PriceP
D : Demand
0
20
40
60
80
100
120
0
40 80 120
160
200
240
14Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
The General Linear Demand function such as
0
20
40
60
80
100
120
0
40 80
120
160
200
240
Figure 2.19 Demand function, P = 100 - 0.5Q
a = 100
P = 100 - 0.5Q
D
Q
P
Slope = - b = - 0.5
a
b 200
P = a - bQ P = 100 - 0.5Q
15Copyright©2001 Teresa Bradley and John Wiley & Sons Ltd
Supply Function P = 10 + 0.5QCalculate and plot the supply schedule P = 10 + 0.5Q
0
10
20
30
40
50
60
70
-20 0 20 40 60 80 100
Table 2.4 Supply scheduleQ: Quantity P: P = 10 +0.5Q
0 10: P =10 +0.5(0)
20 20: P = 10+0.5(20)
40 30
60 40
80 50
100 60
Intercept (vertical) = 10
Slope = 0.5
Horizontal intercept = - 20
P = 10 + 0.5Q
NOTE: the supply function may be plotted by simply joining the intercepts
Figure 2.22
c = 10
P = 10 + 0.5Q
Slope = 0.5
Q
P
S
