The estimated monthly U.S. demand function for avocados is 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 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 $2.05 to $2.85. Given p₁ = $0.80, the initial equilibrium price of avocados is and the initial equilibrium quantity of avocados is Q=144-40p+20p, (Enter your responses rounded to two decimal places.) p=$ Q=-
The estimated monthly U.S. demand function for avocados is 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 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 $2.05 to $2.85. Given p₁ = $0.80, the initial equilibrium price of avocados is and the initial equilibrium quantity of avocados is Q=144-40p+20p, (Enter your responses rounded to two decimal places.) p=$ Q=-
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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