Question
2. Suppose the demand for tea is given as Qd = 100 - 3P + 0.25I, where P is the price of tea and I
2. Suppose the demand for tea is given as Qd = 100 - 3P + 0.25I, where P is the price of tea and I is income of consumers. The supply for tea is given as Qs = 4P - 1.5F - 20, where P is again the price of tea, F is the price of fertilizer. a. If I = 1000, draw the demand for tea b. If F = 150, draw the supply for tea on the same graph. c. Algebraically, solve for P* and Q*
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Core Macroeconomics
Authors: Eric Chiang
3rd edition
978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435
