The market for coffee is characterized by Qdc=210-Pc and Qsc=2Pc-0.5Pt where QC is the quantity of coffee in hundreds of pounds, PC is the price per hundred pounds of coffee, and PT is the price per hundred pounds of tea. The market for tea is characterized by Qdt=210-Pt and Qst= 2Pt-0.5Pc, where QT is the quantity of tea in hundreds of pounds. Suppose a new medical study touts the benefits of drinking coffee, leading to an increase of 30 pounds of coffee at every price. The new equilibrium price of tea is ____. The new equilibrium price of coffee is _____.
The market for coffee is characterized by Qdc=210-Pc and Qsc=2Pc-0.5Pt where QC is the quantity of coffee in hundreds of pounds, PC is the price per hundred pounds of coffee, and PT is the price per hundred pounds of tea. The market for tea is characterized by Qdt=210-Pt and Qst= 2Pt-0.5Pc, where QT is the quantity of tea in hundreds of pounds. Suppose a new medical study touts the benefits of drinking coffee, leading to an increase of 30 pounds of coffee at every price. The new equilibrium price of tea is ____. The new equilibrium price of coffee is _____.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The market for coffee is characterized by Qdc=210-Pc and Qsc=2Pc-0.5Pt where QC is the quantity of coffee in hundreds of pounds, PC is the
The new
The new equilibrium price of coffee is _____.
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