Question
I've done the work, I just need somebody to check my work for me. The demand for sugar in the United States is characterized by
I've done the work, I just need somebody to check my work for me.
The demand for sugar in the United States is characterized by the equationP = 13 - Q/1000,
where Q is tons of sugar. U.S. producers of sugar will supply sugar to the U.S. market based on the equationP = 4 + Q/200.
The rest of the world will sell as much sugar as U.S. consumers will purchase for a price of $6 (Hint: the supply curve for the rest of the world is flat at $6)
Demand P = 13 - Q/1000 Calculation for $12.60; Demand P= 13-Q/1000 13-400/1000
Supply P = 4 + Q/200
Demand P=13-Q/1000
6=13-Q/1000
Solving for Q: -6 -6
4 + Q/200= 13 - Q/1000 0=7-Q/1000
-4 -4 +Q/1000 +Q/1000 Q/1000=7 Q=7000
(*5) Q/200= 9-Q/1000
+Q/1000 +Q/1000 Supply: P= 4+Q/200
5Q/1000+Q/1000=9 6(-4)=4 (-4)+Q/200
6Q/1000=9 (*1000) 2=Q/200 Q=400
6Q/9000= 1500
Solving for P:
4+1500/200 or 13-1500/1000
Q=1500 P=11.50
- What will be the market price of sugar in the United States? 11.50
- How much sugar will American consumers purchase? 1500
- How much sugar will American producers sell? 7000
- How much sugar will Americans import from the rest of the world? 5500 (7000-1500)
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