3.3 A large number of firms are capable of producing chocolate-covered cockroaches. The linear, upwardsloping supply curve

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3.3 A large number of firms are capable of producing chocolate-covered cockroaches. The linear, upwardsloping supply curve starts on the price axis at $6 per box. A few hardy consumers are willing to buy this product (possibly to use as gag gifts). Their linear, downward-sloping demand curve hits the price axis at $4 per box. Draw the supply and demand curves. Does this market have an equilibrium at a positive price and quantity? Explain your answer.

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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