a) complete the table to find the Qd, Qs b) what are the equilibrium P and Q of cherries? c) Suppose that the P of sour cherries, a substitute of the sweet cherries, decreases. As a result the D curve for sweet cherries shifts, and the new D curve is given by the following equation: P=361.8-Qd or Qd-361.8-P Fill the Qd_d column of the table with your answers.
Consider the market for sweet cherries in the Yakima Valley in Washington. The following are the equations of the
Pd=452-Qd or Qd-452-Pd
Ps=(1/450) * Qs+1 or Qs=450 * Ps-450=450 * (Ps-1)
In these equations, P is the Price/lb of sweet cherries in the Yakima Valley, and Qd and Qs are the quantity demanded and the quantity supplied of cherries in milliion lbs per year.
a) complete the table to find the Qd, Qs
b) what are the equilibrium P and Q of cherries?
c) Suppose that the P of sour cherries, a substitute of the sweet cherries, decreases. As a result the D curve for sweet cherries shifts, and the new D curve is given by the following equation:
P=361.8-Qd or Qd-361.8-P
Fill the Qd_d column of the table with your answers.
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