Use the following information to answer questions 1-5. The quantity of tea demanded,QD, depends on the price of tea, PT, and the price of coffee, PC. The quantity of tea supplied,QS, depends on the price of tea, PT, and the price of electricity, PE, according to the following equations:

QD= 12 - 5PT+ 3PC

QS= 30 + 2PT- 4PE

If the price of coffee is $4.00 and the price of electricity is $5.00,

Select one:

A.

the equilibrium price of tea is $3.00 and the equilibrium quantity is 9.

B.

the equilibrium price of tea is $4.00 and the equilibrium quantity is 4.

C.

the equilibrium price of tea is $2.00 and the equilibrium quantity is 14.

D.

the equilibrium price of tea is $2.00 and the equilibrium quantity is 18.