Question
How do I solve for this equation: The demand for kumquats can be represented by P = 240 - 2Qd, where P is the price
How do I solve for this equation: The demand for kumquats can be represented by P = 240 - 2Qd, where P is the price of kumquats (measured in $ per kumquat) and Qd is the quantity demanded of kumquats measured in kumquats per week. The supply of kumquats can be represented by Qs = P - 10 + 2Pm, where Qs is the quantity supplied of kumquats (measured in kumquats per week), P is the price of kumquats (measured in $/kumquat) and Pm is the price of mangos (measured in $ per mango). a. (8 points) Assume that the price of mangos is Pm=5. Graph the kumquat market, and find the equilibrium price and quantity. b. (10 points) Now assume that the price of mangos is Pm=20. On the same graph as in part a, plot the kumquat market and determine the new equilibrium price and quantity. Are mangos and kumquats substitutes or complements in supply? Why?
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