Question
Given the following information about demand and supply for premium alfalfa grass in the Republic of Cow. Alfalfa grass is an important food staple in
Given the following information about demand and supply for premium alfalfa grass in the Republic of Cow. Alfalfa grass is an important food staple in the Republic of Cow. Answer the questions that follow. If you draw diagrams, label them completely, showing both supply and demand intercepts, as well as the demand and supply choke prices. Supply: P = 20 + 0.16Q; Demand: P = 160 - 0.16Q, where Q = quantity of alfalfa grass (in pounds) demanded per week and P = price per pound of crickets. Solve the problems in the order in which they are presented. Number each answer as indicated. PART I: (a) Determine the equilibrium price and quantity. (b) Determine the demand intercept. (c) Determine the supply intercept. (d) Determine the demand choke price. (e) Determine the supply choke price. (f) Draw a diagram to illustrate your answer. Label the diagram completely. (g) Determine the consumer surplus (CS). (h) Determine the producer surplus (PS).
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