Question
10. Textbook: Problem 2.28, p. 73. The problem typed out: Consider the following sequence of events in the U.S. market for strawberries during the years
10. Textbook: Problem 2.28, p. 73. The problem typed out:
Consider the following sequence of events in the U.S. market for strawberries during the
years 19982000:
1998: Uneventful. The market price was $5.00 per bushel, and 4 million bushels were sold.
1999: There was a scare over the possibility of contaminated strawberries from Michigan.
The market price was $4.50 per bushel, and 2.5 million bushels were sold.
2000: By the beginning of the year, the scare over contaminated strawberries ended when
the media reported that the initial reports about the contamination were a hoax. A series
of oods in the Midwest, however, destroyed signicant portions of the strawberry elds in
Iowa, Illinois, and Missouri. The market price was $8.00 per bushel, and 3.5 million bushels
were sold.
Find linear demand and supply curves that are consistent with this information.
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