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2) (13 marks) The demand for coffee is given by: De = 100 - 2p. + 0.5p and for tea: De = 120 - p:

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2) (13 marks) The demand for coffee is given by: De = 100 - 2p. + 0.5p and for tea: De = 120 - p: + 0.75p- where pe and p, are the prices of coffee and tea respectively. The respective supply functions are: Se = 10 + pc + 5we St = 5+2p + 2w where w. and we are the indexes of weather conditions affecting production of coffee and tea respectively. Compute the comparative-static effects on equilibrium prices of changes in both of the weather condition variables

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