Solution SetUp The following table lists what we know and what we want to determine: 



Since
the demand curve is linear, then it has the form
Since the area of a triangle is (base x height)/2, we obtain
and it results in the equation
Now we are ready to solve Sam's problem. Equations (1) through (4) give you 4 equations in the 4 unknowns m, b, p' and q'. After we have solved this system of equations, the equation of the linear demand curve can be determined using the values for m and b. In addition the equilibrium point will be specified by (q', p'). Brief Review Finding the Solution
