3 ms·
I love your example because it shows how different we people think. It has the opposite effect on me! I find these two equations Demand = 100 + 50*Price
by enriquto 5y ago
I love your example because it shows how different we people think. It has the opposite effect on me! I find these two equations
Demand = 100 + 50*Price
Supply = 50 + 20*Price
extremely confusing! What are the units of demand? Is it units per day, average units per capita of a population? Is it in money? It surely must be money, since it is equated to Price with a unitless constant in-between. Then, do the two prices on each line refer to the same quantity? No, it cannot be, for one concerns demand (the price that people will pay?) and the other supply (the money that it costs to build something). Thus these two equations are unrelated on first sight. There must be some hidden, "obvious" relation between them but I'm at a loss. I'm not making things up, this is really what I see here. I'm a 42-year old who knows something about computers, physics and mathematics, but nothing about economy, and these two lines are utterly mystifying.
Now, for this:
A = 100 + 50*C
B = 50 + 20*C
This is just two linear equations in three variables, which has a one-dimensional space of solutions.