00:01
So here we want to draw our linear demand curve.
00:04
To draw our linear demand curve, we need to find our equation for our demand curve for our town.
00:13
Since we are given that our town consumes 9 ,000 gallons per day for free, i'm going to assume that my curve is going to start at the point 0 ,9000.
00:25
Now, our slope of our demand curve we're going to assume is negative 1, meaning that every 1 ,000 gallons increase in price means the quantity demand decreases by 1 ,000.
00:40
So our equation for our demand curve then is going to be 9 ,000 minus 1 ,000 times p.
00:50
Now our market supply curve includes our supply from our wells and the firm's supply curve.
00:58
Since our town wells provide 10 ,000 gallons per day for free, this is going to start at the point 0 ,10 ,000.
01:09
The firm's supply curve is linear and starts at the origin, so we're going to assume again that our slope is 1...