- #1

dpa

- 147

- 0

Hi everyone, I am having hardtime understanding this problem.

I have two functions:

QD = 5600 – 8P

QS = 500 + 4P

Why is the graph like the one attached and not the normal mathematical graph where supply curve starts from y=(0,-125)?

Do ignore the consumer surplus and producer surplus part. That is irrelevant.

How (and why) do we proceed in this way in our calculations?

I have two functions:

QD = 5600 – 8P

QS = 500 + 4P

Why is the graph like the one attached and not the normal mathematical graph where supply curve starts from y=(0,-125)?

Do ignore the consumer surplus and producer surplus part. That is irrelevant.

How (and why) do we proceed in this way in our calculations?