A new video on Linear Supply equations. In this lesson we’ll learn how to derive an equation representing the supply of a good using the data in a supply schedule or curve.

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3 thoughts on “Introduction to Linear Supply Equations”

Thanks
Mr welker, you have clear my confusion.
Thanks once again.
Waseem

Hi Waseem,
You don’t have to show -0.4 in the P axis. For your equation, the supply curve will begin at a quantity of 200. This supply equation is highly unrealistic, as it indicates that even if the price of the good were zero, firms would still produce 200 units. This makes almost no sense. Most supply equations will have a ‘c’ variable that is negative, indicating that the Q intercept is negative. In you case, the P-intercept is negative.

Hope that helps.
Mr. Welker

How to draw the the graph of equation
Qs=200+500P
0=200+500P
500P=-200
P=-0.4

If P=0
Qs=200

Can we show -0.4 in y-axis
Please if you can support in plotting this equattion graph.

Thanks

Mr welker, you have clear my confusion.

Thanks once again.

Waseem

Hi Waseem,

You don’t have to show -0.4 in the P axis. For your equation, the supply curve will begin at a quantity of 200. This supply equation is highly unrealistic, as it indicates that even if the price of the good were zero, firms would still produce 200 units. This makes almost no sense. Most supply equations will have a ‘c’ variable that is negative, indicating that the Q intercept is negative. In you case, the P-intercept is negative.

Hope that helps.

Mr. Welker

How to draw the the graph of equation

Qs=200+500P

0=200+500P

500P=-200

P=-0.4

If P=0

Qs=200

Can we show -0.4 in y-axis

Please if you can support in plotting this equattion graph.