3. Consider the market for buko juice. In this market, the supply curve is given by S = 10PJ -5PA and the demand curve is given by D = 100-15PJ +10PT, where J denotes buko juice, A denotes buko, and T de notes tea. a. Assume that PA is fixed at P1 and PT = 5. Calculate the equilibrium price and quantity in the buko juice market. b. Suppose that a poor harvest season raises the price of buko to PA = 2. Find the new equilibrium price and quantity of buko juice. Draw a graph to illustrate your answer.
3. Consider the market for buko juice. In this market, the supply curve is given by S = 10PJ -5PA and the demand curve is given by D = 100-15PJ +10PT, where J denotes buko juice, A denotes buko, and T de notes tea. a. Assume that PA is fixed at P1 and PT = 5. Calculate the equilibrium price and quantity in the buko juice market. b. Suppose that a poor harvest season raises the price of buko to PA = 2. Find the new equilibrium price and quantity of buko juice. Draw a graph to illustrate your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![3. Consider the market for buko juice. In this market, the supply curve is
given by S = 10PJ -5PA and the demand curve is given by D =
100-15PJ +10PT, where J denotes buko juice, A denotes buko, and T
denotes tea.
a. Assume that PA is fixed at P1 and PT = 5. Calculate the
equilibrium price and quantity in the buko juice market.
b. Suppose that a poor harvest seas on raises the price of
buko to PA = 2. Find the new equilibrium price and quantity of buko
juice. Draw a graph to illustrate your answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7b3c76e-6ced-456e-b64e-eb3e713e9240%2F8ed4b487-e4a3-466a-88fe-e82e72889ca6%2F2wcngon_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Consider the market for buko juice. In this market, the supply curve is
given by S = 10PJ -5PA and the demand curve is given by D =
100-15PJ +10PT, where J denotes buko juice, A denotes buko, and T
denotes tea.
a. Assume that PA is fixed at P1 and PT = 5. Calculate the
equilibrium price and quantity in the buko juice market.
b. Suppose that a poor harvest seas on raises the price of
buko to PA = 2. Find the new equilibrium price and quantity of buko
juice. Draw a graph to illustrate your answer.
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