Question
The domestic supply and demand curves for Jolt coffee beans are given by P = 10 + 2Q and P = 100 - 3Q, respectively,
The domestic supply and demand curves for Jolt coffee beans are given by P = 10 + 2Q and P = 100 - 3Q, respectively, where P is the price in dollars per bushel, and Q is the quantity in millions of bushels per year. The United States produces and consumes only a trivial fraction of world Jolt bean output, and the current world price of $25/bushel is unaffected by events in the U.S. market. Transportation costs are also negligible. How much will U.S. consumers pay for a bushel of Jolt coffee beans, and how many bushels per year will they consume?
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