Consider the daily market for a cup of coffee in Chapel Hill. Market demand for coffee is given by the equation P = 80 - 1 2Qd, and market supply of coffee is given by P = Qs 38. (a) If the price of coffee is $0, how many cups would buyers want to consume? How many cups would sellers want to sell? (b) Calculate the price at which buyers would not want to buy any coffee (i.e ., Qd = 0). 2 (c) Calculate the equilibrium price of coffee and the quantity of coffee cups sold in Chapel every day. (d) Draw a properly labeled diagram for the market for coffee in Chapel Hill.
Consider the daily market for a cup of coffee in Chapel Hill. Market demand for coffee is given by the equation P = 80 - 1 2Qd, and market supply of coffee is given by P = Qs 38. (a) If the price of coffee is $0, how many cups would buyers want to consume? How many cups would sellers want to sell? (b) Calculate the price at which buyers would not want to buy any coffee (i.e ., Qd = 0). 2 (c) Calculate the equilibrium price of coffee and the quantity of coffee cups sold in Chapel every day. (d) Draw a properly labeled diagram for the market for coffee in Chapel Hill.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the daily market for a cup of coffee in Chapel
Hill. Market demand for coffee is given by the equation
P = 80 - 1 2Qd, and market supply of coffee is given
by P = Qs 38. (a) If the price of coffee is $0, how
many cups would buyers want to consume? How many
cups would sellers want to sell? (b) Calculate the price
at which buyers would not want to buy any coffee (i.e
Qd 0). 2 (c) Calculate the equilibrium price of
coffee and the quantity of coffee cups sold in Chapel
Hill every day. (d) Draw a properly labeled diagram for
the market for coffee in Chapel Hill.
=
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