In a small coastal city, the price of coffee per pound affects both the demand and supply within the local market. When the price is $2.00 per pound, the demand in the city is for 3.5 thousand pounds of coffee, and the local suppliers are willing to provide 1.5 thousand pounds. However, when the price increases to $3.00 per pound, the demand decreases to 2 thousand pounds, while the supply rises to 2.25 thousand pounds. Assuming that the relationship between supply and demand is linear, a. determine the equilibrium price. The equilibrium price is $ type your answer... b. determine the equilibrium quantity. The equilibrium quantity is type your answer... per pound pounds of coffee.
In a small coastal city, the price of coffee per pound affects both the demand and supply within the local market. When the price is $2.00 per pound, the demand in the city is for 3.5 thousand pounds of coffee, and the local suppliers are willing to provide 1.5 thousand pounds. However, when the price increases to $3.00 per pound, the demand decreases to 2 thousand pounds, while the supply rises to 2.25 thousand pounds. Assuming that the relationship between supply and demand is linear, a. determine the equilibrium price. The equilibrium price is $ type your answer... b. determine the equilibrium quantity. The equilibrium quantity is type your answer... per pound pounds of coffee.
Chapter1: Making Economics Decisions
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Transcribed Image Text:In a small coastal city, the price of coffee per pound affects both the demand and supply
within the local market. When the price is $2.00 per pound, the demand in the city is for
3.5 thousand pounds of coffee, and the local suppliers are willing to provide 1.5 thousand
pounds. However, when the price increases to $3.00 per pound, the demand decreases to
2 thousand pounds, while the supply rises to 2.25 thousand pounds. Assuming that the
relationship between supply and demand is linear,
a. determine the equilibrium price. The equilibrium price is $ type your answer...
b. determine the equilibrium quantity. The equilibrium quantity is type your answer...
per pound
pounds of coffee.
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