(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
This problem will ask you to plot demand and supply lines and find the equilibrium quantity and price. We begin this problem by drawing our x and y-axes.
We will label the vertical axis Price and the horizontal axis Quantity.
(Description)
The coordinate plane with the horizontal x-axis and the vertical y-axis is drawn.
The horizontal axis is labeled as Quantity of trucks. It is measured from 0 to 20 million with a break between 0 and 11 million.
The vertical axis is labeled as Price of truck. It is measured from 0 to 45000 dollars with a break between 0 and 15000 dollars.
(Speaker)
Next, we're going to plot the points that make up the demand line. We begin by plotting the point that corresponds to a price of $20000 and a quantity of 20 million.
(Description)
The point with coordinates, 20 and 20000, is plotted on the coordinate plane.
(Speaker)
We will continue by plotting the remainder of the points for the price and quantity demand coordinates.
(Description)
The points with the following coordinates are plotted on the coordinate plane: 18 and 25000, 16 and 30000, 14 and 35000, 12 and 40000.
(Speaker)
The final step is to connect the dots. We will label this line Demand.
(Description)
All six dots are connected with a straight line. The line is labeled as Demand.
(Speaker)
Next, we're going to draw our supply line. The supply line is constructed in the same manner as demand. To speed up the process, we're going to plot the five points.
(Description)
The five points with the following coordinates are plotted on the coordinate plane: 14 and 20000, 15 and 25000, 16 and 30000, 17 and 35000, 18 and 40000.
(Speaker)
The final step in constructing the supply schedule is to connect the dots and label the line Supply.
(Description)
These five dots are connected with a straight line. The line is labeled as Supply.
(Speaker)
Now that we have plotted the demand and supply schedules, we can identify the equilibrium price and quantity. Remember that equilibrium occurs when the quantity demand equals the quantity supplied.
(Description)
The lines Demand and Supply intersect at the highlighted point with coordinates, 16 and 30000. This point is labeled as, P equals 30000, Q equals 16.
(Speaker)
In our graph, this will be at the intersection of the two lines. For this problem, the intersection occurs at a price of 30 thousand dollars and a quantity of 16 million trucks.
(Description)
A dotted vertical line from a point with coordinates, 16 and 0, to a point with coordinates, 16 and 30000, is drawn. Another dotted horizontal line from a point with coordinates, 0 and 30000, to a point with coordinates, 16 and 30000, is drawn. These lines intersect at the point with coordinates, 16 percent and 30000 percent.