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Consider the following equations describing the US market for blueberries: (lb 2 3550 266P (lb 2 1800 + 240P where price is measured in nominal
Consider the following equations describing the US market for blueberries: (lb 2 3550 266P (lb 2 1800 + 240P where price is measured in nominal dollars per bushel and quantities in millions of bushels per year. a. Which equation is the supply equation? Which equation is the demand equation? How do you know? b. Find the equilibrium price and quantity exchanged in the free market tor blueberries. 0. Suppose the government, in support of blueberry farmers, sets and price floor $2 above the market clearing price. Will a shortage or surplus result? It so, what will be the amount of the shortage or surplus
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