SECTION A: IN CLASS EXAMPLE: CHAPTER 2 – DEMAND AND SUPPLY PROBLEMS

1- The following data represents points on the demand curve for Jamba Juice orange juice.

a- Graph these points with the price on the vertical axis and quantity on the horizontal axis.

b- From the graph, is the demand curve linear or non-linear ( i.e. is it a straight line?)

c- Derive the demand equation ( demand curve) for Jamba Juice based on the data given.

d- Derive the inverse demand curve

e- Using the demand curve for Jamba Juice state how much orange juice will be demanded at P = $0 and at P = $6.

2. The following data represents 5 points on the supply curve for Jamba Juice orange juice.

a) Graph these points with the price on the vertical axis and quantity on the horizontal axis.

b) From the graph, is the supply curve linear or non-linear (i.e. is it a straight line?)

c) Derive the supply equation( supply curve) for Jamba Juice based on the data given.

d) Derive the inverse supply curve

e) Using the supply curve for Jamba Juice state how much orange juice will be supplied at P = $0 and at P = $6.