Question
The market supply curve for organic kidney beans is given by P = 1.5Q s , and the demand curve is P = 60 Qd
The market supply curve for organic kidney beans is given by P = 1.5Q s , and the demand curve is P = 60 Qd .
Construct and label a diagram for this market.
(a) How many units will be traded at a price of $42? At a price of $27? Which participants will be dissatisfied at these prices? What is the excess supply or excess demand at each price?
(b) What quantity of organic kidney beans at what price will be sold in equilibrium?
(c) What is the total revenue (price times quantity sold) form organic kidney bean sales? Where is it shown on your diagram?
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Managerial Economics and Business Strategy
Authors: Michael R. baye
7th Edition
978-0073375960, 71267441, 73375969, 978-0071267441
