Question
) Bert, as a consumer, places the value on a pair of jeans as follows. Value of firstpair: $70 Value of secondpair: $60 Value of
) Bert, as a consumer, places the value on a pair of jeans as follows.
Value of firstpair: $70
Value of secondpair: $60
Value of thirdpair: $50
Value of fourthpair: $40
Value of fifthpair: $30
Value of sixthpair: $20
Value of seventh pair: $10
Ernie, as a producer, pays the following cost to produce jeans.
Cost of firstpair: $10
Cost of secondpair: $20
Cost of thirdpair: $30
Cost of fourthpair: $40
Cost of fifthpair: $50
Cost of sixthpair: $60
Cost of seventh pair: $70
Using the information given above, answer the following questions.
(1)If the price is $20, how many pairs of jeans will be demanded by Bert?
(2)If the price is $20, how many pairs of jeans will be supplied by Ernie?
(3)Explain the reason why $30 price is not an equilibrium price.
(4)What is behind the force that moves the price from $30 to the equilibrium level?
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