- #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?