4. In a small village in Malawi, there are 100 small dairy farmers who sell milk to the residents in the village. The supply function of milk by each dairy farmer is given by Qs=-2+2P where Qs represents the quantity milk of supplied in liters and P is the price of milk per liter. The market demand for milk by the residents of the villages is given by Qd-400-100P where Qd is the total market demand for milk in liters. a. Derive the equation for the market supply of milk. b. Find the equilibrium price and quantity of milk.

4. In a small village in Malawi, there are 100 small dairy farmers who sell milk to the residents in the village. The supply function of milk by each dairy farmer is given by Qs=-2+2P where Qs represents the quantity milk of supplied in liters and P is the price of milk per liter. The market demand for milk by the residents of the villages is given by Qd-400-100P where Qd is the total market demand for milk in liters. a. Derive the equation for the market supply of milk. b. Find the equilibrium price and quantity of milk.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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