Question
The Demand and Supply curves for apples in Corvallis are given by D = 900 - 3P and S = 100 + P where, P
The Demand and Supply curves for apples in Corvallis are given by D = 900 - 3P and S = 100 + P where, P is the price per container of apples.
a) In this market, what is the quantity of apples bought and sold at equilibrium? What is the equilibrium price? Show in a diagram.
b) Assume that the price of an apple container decreases by $20. What is the new equilibrium price and quantity? What about the demand and supply curves?
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
