Question

The table contains price-supply dsta and price-dersand data fot com. Find a linear reqression modet for. Find a linear regresson moddior the proe-supply data where x is supply (n bilkons of bushess) the prce-supply dala where xis supply (in billans of bustets) and y is price (in dolars) Do be same tor and y is price in dollars) the proe-demand dats. Find the equabbrum price for corm y= (fype an oquabon using x as the varable Round to two decmal places as needed)

Answer 1

To find the equilibrium price for corn using linear regression, graph the demand and supply equations on the same axes. Their intersection shows the equilibrium: a price of $2 and quantity of 12 bushels.

Step-by-step explanation:

To find a linear regression model for the price-supply and price-demand data for corn, you can use graphs instead of algebra. Graph the demand curve with the equation P = 8 - 0.5Qd and the supply curve with the equation P = -0.4 + 0.2Qs. The vertical intercepts are 8 for demand and -0.4 for supply, while the slopes are -0.5 for demand and 0.2 for supply. By graphing these on the same set of axes, you can identify the equilibrium price where the two curves cross. This intersection point reflects where quantity demanded (Qd) equals quantity supplied (Qs), which, according to the graphs, happens at a price of $2 and a quantity of 12 bushels.