Using the supply and demand functions below, derive the demand and supply curves if Y = $55,000 and p. =$14. What is the equilibrium price andquantity of coffee?The demand function for coffee isQ = 8.5 -p+0.01Y,where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual householdincome in high-income countries in thousands of dollars.The coffee supply function isQ = 9.6 + 0.5p – 0.2pc.where p, is the price of cocoa in dollars per pound.The equilibrium price of coffee isp=$per poundand the equilibrium quantity isQ =millions of pounds per year.(Enter your responses rounded to two decimal places.)

here we calculate the given by following method given below as;Demand, Q = 8.5-p +0.01Y Supply, Q=9.6 +0.5p-0.2 Pc Y = $55,000 Pc = $14 Equilibrium Price and Equilibrium Quantity exist where Demand = Supply Demand Q= 8.5-p +0.1Y Q=8-5-p + 0.01(55,000) Q=558.5-P (Demand curve) Supply, Q=9.6+ 0.5p - 0.2Pc Q= 9.6 +0:5p -0.2(14) Q=12.4 +0.5P (Supply Curve) At Equilibrium, Demand = Supply 558.5-P = 12.4 +0.5P =546.=1.5P p= 364.07 And, a= 194.43 Hence, Equilibrium Price of coffee is $364.07 Equilibrium Quantity of coffee is 194.43

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The demand function for coffee is Q= 8.5 -p+0.01Y, where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual househo income in high-income countries in thousands of dollars. The coffee supply function is Q= 9.6 + 0.5p – 0.2pc- where pe is the price of cocoa in dollars per pound. The equilibrium price of coffee is per pound and the equilibrium quantity is

The demand function for coffee is Q= 8.5 -p+0.01Y, where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual househo income in high-income countries in thousands of dollars. The coffee supply function is Q= 9.6 + 0.5p – 0.2pc- where pe is the price of cocoa in dollars per pound. The equilibrium price of coffee is per pound and the equilibrium quantity is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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