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now were going to look at some formulas called supply and demand now the way that it works is with supply and with demand you have a certain amount of give-and-take in any market so the amount that is supplied is oftentimes income in tandem with the amount that is demanded you dont want to skew it one way or the other so for example if you demand for a product and as the price becomes higher the quantity demanded becomes less because fewer people can actually afford it however if you get a supplied so if you overflow the market then more people are able to buy it so we use linear models to represent both the supply and the demand now if you notice these equations look very very similar if you look at the quantity demanded this is the same form as y equals a X plus B the only difference is is that you get slope of the demand function that is our pink P is your unit price so that is your independent variable the quantity demanded is your dependent variable now normally dependent varia
