3. Suppose that the market for bananas in Binghamton on an average weekday is given by thefollowing equations:P = 48 – 2QP = 24 + 2Qdemand:supply:where P is the price of a bushel in dollars and Q is quantity in bushels.a. What is the equilibrium price and quantity? Show graphically.b. Assume that the National Institutes of Health issues a study showing thatbananas reduce the risk of cancer.The demand for bananas increases to:demand':P = 60 – 2QAt the original equilibrium price, is there a shortage or a surplus? Of howmuch?c. What is the new equilibrium price and quantity? Show graphically.

At equilibrium, demand = supply and graphically where demand & supply intersect or cross each…

g equations: P = 48 – 2Q P = 24 + 2Q demand: supply: is the price of a bushel in dollars and Q is quantity in bushels. What is the equilibrium price and quantity? Show graphically. .Assume that the National Institutes of Health issues a study showing that reduce the risk of cancer. The demand for bananas increases to: demand': P = 60 – 2Q At the original equilibrium price, is there a shortage or a surplus? Of how What is the new equilibrium price and quantity? Show graphically.

g equations: P = 48 – 2Q P = 24 + 2Q demand: supply: is the price of a bushel in dollars and Q is quantity in bushels. What is the equilibrium price and quantity? Show graphically. .Assume that the National Institutes of Health issues a study showing that reduce the risk of cancer. The demand for bananas increases to: demand': P = 60 – 2Q At the original equilibrium price, is there a shortage or a surplus? Of how What is the new equilibrium price and quantity? Show graphically.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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