The estimated monthly U.S. demand function for avocados is Q=144-40p + 20pt, where p is the price of avocados and p, is the price of tomatoes. The estimated supply function is Q = 50+ 15p. The initial price of tomatoes is $0.80 per pound. Using algebra, determine the initial equilibrium price and quantity of av then determine how price and quantity change if the price of tomatoes increases by $1.35 to $2.15. Given p = $0.80, the initial equilibrium price of avocados is
The estimated monthly U.S. demand function for avocados is Q=144-40p + 20pt, where p is the price of avocados and p, is the price of tomatoes. The estimated supply function is Q = 50+ 15p. The initial price of tomatoes is $0.80 per pound. Using algebra, determine the initial equilibrium price and quantity of av then determine how price and quantity change if the price of tomatoes increases by $1.35 to $2.15. Given p = $0.80, the initial equilibrium price of avocados is
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Can you show me how to solve the last two?

Transcribed Image Text:The estimated monthly U.S. demand function for avocados is
Q=144-40p + 20pt,
where p is the price of avocados and p is the price of tomatoes. The estimated supply function is
The initial price of tomatoes is $0.80 per pound. Using algebra, determine the initial equilibrium price and quantity of avocados, and
then determine how price and quantity change if the price of tomatoes increases by $1.35 to $2.15.
Given p= $0.80, the initial equilibrium price of avocados is
and the initial equilibrium quantity of avocados is
(Enter your responses rounded to two decimal places.)
Given p = $2.15, the new equilibrium price of avocados is
and the new equilibrium quantity of avocados is
Q = 50 + 15p.
(Enter your responses rounded to two decimal places.)
p = $2
Q = 80.
p = $
Q=0.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education