The table contains price-supply data and price-demand data for corn. Find a linear regression model for the price-supply data where x is supply and y is prices. Do the same for the price-demand data. Find the equilibrium price for corn.
| price | Supply | price | demand |
| 2.14 | 6.26 | 2.05 | 9.99 |
| 2.29 | 7.42 | 2.12 | 9.32 |
| 2.35 | 7.71 | 2.25 | 8.45 |
| 2.43 | 7.78 | 2.38 | 8.19 |
| 2.43 | 8.16 | 2.35 | 7.77 |
| 2.54 | 8.34 | 2.41 | 7.03 |
Find a linear regression model for the price-supply data where x is supply and y is price.
Y = ?
Find a linear regression model for the price-demand data where x is demand and y is prices.
Y = ?
Find the equilibrium price for corn.
Y = ?
Solution:-
Find a linear regression model for the price-supply data where x is supply and y is price.
Y = .18x + 0.99
Find a linear regression model for the price-demand data where x is demand and y is prices.
Y = -0.13x + 3.38
Find the equilibrium price for corn.
Y = 2.38