Question
Continue with the setup from the previous question. Excellent growing conditions, including an exceptionally hot summer, change the supply conditions for artichokes. The demand curve
Continue with the setup from the previous question. Excellent growing conditions, including an exceptionally hot summer, change the supply conditions for artichokes. The demand curve remains
QD = 4,004 - 480 P or equivalently P = 1001/120 - 1/480 QD
but the supply curve shifts to
QS = 440 P
Assuming that there are no fixed costs, what is the total profit of suppliers at the market clearing price and quantity?
Group of answer choices
a. None of the other options is correct
b. Profit is between $3,200 and $3,500
c. Profit is between $4,100 and $4,400
d. Profit is between $3,800 and $4,100
e. Profit is between $3,500 and $3,800
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