Is anybody good at microeconomics?

Question

I don't understand how to chart a problem that has price, quanitiy demand and quantity supplied. Can somebody help please?

Answer 1

make a graph with 0 at the vertices.
have the y-axis (vertical) be supply (in $ per unit) and x-axis (horizontal) be for quantity demanded (in 000s)
draw a demand curve and supply curve -- demand curve is downward sloping (that is as the price drops, the quantity demanded increases)....supply curve is upward sloping (that is as the price of something increases, supply increases as well)

Thinking in logical terms....if the price of something continued to drop, we would want or DEMAND more of those items. Conversely, if the price was increasing, suppliers would be willing to SUPPLY us with more and more in order to get maximum revenue.

Now, where the curves meet, this is the equilibrium price -- the price at which demand meets supply.

Answer 2

Use a line chart

Simple " x & y" axis

plot the price value on the "Y" axis = veritcal axis

plot the values of demand and supplied on the "x" = horizontal axis

Rememeber in the case of normal goods = increased demand increases prices = increases supply