Consider the market for orange juice. In this market, the supply curve is given by Qs = 100PJ-20PO and the demand curve is given by QD = 1000-150PJ +100PC, where J denotes orange juice, O denotes Orange, and C denotes coffee. Q1: Assume that Po = 10 and Pc = 8. Calculate the equilibrium price and quantity in the Orange juice market. Suppose that a poor harvest season raises the price of oranges to Po = 15 Q2:Is it possible to reach a market equilibrium if the price of orange juice PJ remains unchanged? Why? How much quantity of orange juice will finally be exchanged on the market? (Q3: Find the market price necessary to restore equilibrium. Deduce the equilibrium quantity of orange juice. THIS (Q4:Draw a graph to illustrate your answers. THIS

Consider the market for orange juice. In this market, the supply curve is given by Qs = 100PJ-20PO and the demand curve is given by QD = 1000-150PJ +100PC, where J denotes orange juice, O denotes Orange, and C denotes coffee. Q1: Assume that Po = 10 and Pc = 8. Calculate the equilibrium price and quantity in the Orange juice market. Suppose that a poor harvest season raises the price of oranges to Po = 15 Q2:Is it possible to reach a market equilibrium if the price of orange juice PJ remains unchanged? Why? How much quantity of orange juice will finally be exchanged on the market? (Q3: Find the market price necessary to restore equilibrium. Deduce the equilibrium quantity of orange juice. THIS (Q4:Draw a graph to illustrate your answers. THIS

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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