Question
2. (11) Suppose the estimated supply function for avocados is given by Q S = 58 + 15 p - 20 p f , where
2. (11) Suppose the estimated supply function for avocados is given byQS = 58 + 15p -20pf , wherepf is the price of fertilizer. The estimated demand for avocados is given byQd = 144 -40p +20pt , wherept is the price of tomatoes per pound.
- (3) Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer,pf,is equal to $0.40 per lb. and price of tomatoes,pt, is equal to $0.80 per lb.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
