Complete the following. Be sure that the price is on the y-axis (always), that you mark ALL labels on your graph, and that your scale is accurate.

Steps to Solve

1. Set Up the Axes To create the graph, label the y-axis as "Price" and the x-axis as "Quantity."

2. Determine the Scale Choose an appropriate scale for both axes. For the price on the y-axis, you can use increments of $0.10 from $0.20 to $1.00. For quantity on the x-axis, use increments of 200, covering from 0 to 2000.

3. Plot the Data Points Using the data provided, plot points for both quantity demanded and quantity supplied. The points for quantity demanded are:

   • At $1.00, quantity demanded is 200
   • At $0.90, quantity demanded is 400
   • At $0.80, quantity demanded is 600
   • At $0.70, quantity demanded is 800
   • At $0.60, quantity demanded is 1000
   • At $0.50, quantity demanded is 1200
   • At $0.40, quantity demanded is 1400
   • At $0.30, quantity demanded is 1600
   • At $0.20, quantity demanded is 1800

The points for quantity supplied are:

• At $1.00, quantity supplied is 1600
• At $0.90, quantity supplied is 1400
• At $0.80, quantity supplied is 1200
• At $0.70, quantity supplied is 1100
• At $0.60, quantity supplied is 1000
• At $0.50, quantity supplied is 800
• At $0.40, quantity supplied is 600
• At $0.30, quantity supplied is 400
• At $0.20, quantity supplied is 300

4. Draw the Demand and Supply Curves Connect the points for quantity demanded with a smooth line, and do the same for quantity supplied. The demand curve usually slopes downward from left to right, while the supply curve slopes upward.

5. Label the Equilibrium Point Identify where the demand and supply curves intersect. Label this point as "Equilibrium" and note the equilibrium price and quantity.

6. Add a Legend (if necessary) If your graph has both demand and supply lines, add a legend to differentiate between them (e.g., demand curve and supply curve).