1. Given the estimated market demand and supply functions for coffee as: Qxd= 85.6 –10Px –3Ps +Y and Qs= 96 + 5Px - 2Pc, respectively, where Qd is the quantity demand, Qs is the quantity supplied, Px= price of coffee, Ps= price of sugar =$0.20; Y= $55,000 (note: Y is income measured in thousands, so the value to use here is $55), and Pc= price of cream=$5. a. Find the demand function at the given values for Ps, Y, and Pc.b. Find the supply function at given value of the price of cream (Pc). c. Based on your answers to questions (a) and (b), what is the market equilibrium price and quantity for coffee. d. List the factors which affect the demand and supply sides of the market for coffee.
1. Given the estimated market
a. Find the demand function at the given values for Ps, Y, and Pc.b. Find the supply function at given value of the price of cream (Pc). c. Based on your answers to questions (a) and (b), what is the
d. List the factors which affect the demand and supply sides of the market for coffee.
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