Final answer:
To graph the supply and demand curves for Purina pet food, the supply curve is drawn as an upward-sloping line, while two demand curves, D1 steeper than D2, are downward-sloping and intersect with the supply curve at the equilibrium point.
Step-by-step explanation:
The student's question involves drawing a graph to depict supply and demand curves in the market for Purina pet food. To start, the vertical axis (y-axis) is labeled as Price, and the horizontal axis (x-axis) is labeled as Quantity. The supply curve is an upward-sloping line, representing that as the price increases, the quantity of Purina pet food supplied also increases. This is the law of supply.
Two demand curves are drawn on the same graph as downward-sloping lines. The first demand curve, D1, is steeper, indicating that for a given price change, the quantity demanded changes by a larger amount compared to D2. However, as requested, both demand curves intersect with the supply curve at the same point, which represents the equilibrium point where the quantity supplied and quantity demanded are equal.
Steps to Create the Graph:
- Draw two perpendicular lines to represent the axes.
- Label the vertical axis as 'Price' and the horizontal as 'Quantity'.
- Plot the supply curve as a line that slopes up from left to right.
- Draw two demand curves. Make D1 steeper than D2, both starting higher on the Price axis than where the supply curve starts.
- Ensure both demand curves intersect with the supply curve at the same point on the graph.
- Label the curves as 'Supply', 'D1', and 'D2'.
The graph illustrates how the equilibrium price and quantity in the market for Purina pet food are determined by where the supply and demand curves intersect.