The market supply curve for raisins is given by P = 1.5Q s , and the demand
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Question:
The market supply curve for raisins 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 raisins at what price will be sold in equilibrium?
(c) What is the total revenue (price times quantity sold) from raisins sales? Where is it shown on your diagram?
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