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

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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.
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.
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