. When something is popular and many people need or want to buy it, the
price goes up. Items that no one wants are marked down to a lower price.
The change in an item's price and the amount available to buy are the basis
of the concept of supply and demand in economics. Demand is the number
of things people are willing to buy at a particular price. Supply refers to the
number of things the manufacturer is willing to make at a particular price,
The price that the customer pays is based on both supply and demand.
Suppose that during a six-month period, the supply and demand for a
popular gaming system in a certain city has been tracked and approximated
by the following system of equations, where x represents the number of
gaming systems (in thousands) and y represents the price per gaming system.
• Demand equation: 0.7x + y = 340
Supply equation: -- 1.5x + y = 320
1. Solve the system algebraically to determine the balance point between
supply and demand.
2. At about what price do the supply and demand balance?
3. About how many gaming systems is the manufacturer willing to supply
at that price?
During the same 6-month period in a different city, the supply and demand
for the same gaming system is represented by the following system of
equations.
• Demand equation: 1.4x + 2y = 800
• Supply equation: -1.5x + y = 320
4. Solve the system by graphing to determine the balance point between
the supply and demand in this city.
5. At about what price do the supply and demand balance?
6. About how many gaming systems is the manufacturer willing to supply
at that price?