Suppose the demand for apple juice is QD = 30 – 2P, and the supply of apple juice is QS = 20 + 4P, where P is the price of the juice, QD and QS are the quantities demanded and supplied respectively. a. Find the equilibrium price and the equilibrium quantity for apple juice. b. Suppose a freeze in Florida damages the orange harvest and, as a result, the price of oranges rises. What will happen to the equilibrium price and equilibrium quantity of apple juice? Why?

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.