Using the supply and demand functions below, derive the demand and supply curves if Y = $55,000 and p. = $16. What is the equilibrium price and quantity of coffee? The demand function for coffee is Q= 8.5-p+0.01Y, where Q is the quantity of coffee in millions of pounds per year, pis the price of coffee in dollars per pound, and Y is the average annual household income in high-income countries in thousands of dollars. The coffee supply function is Q= 9.6 + 0.5p - 0.2pc- where p, is the price of cocoa in dollars per pound. The equilibrium price of coffee is p= S per pound and the equilibrium quantity is Q=millions of pounds per year. (Enter your responses rounded to two decimal places.)
Using the supply and demand functions below, derive the demand and supply curves if Y = $55,000 and p. = $16. What is the equilibrium price and quantity of coffee? The demand function for coffee is Q= 8.5-p+0.01Y, where Q is the quantity of coffee in millions of pounds per year, pis the price of coffee in dollars per pound, and Y is the average annual household income in high-income countries in thousands of dollars. The coffee supply function is Q= 9.6 + 0.5p - 0.2pc- where p, is the price of cocoa in dollars per pound. The equilibrium price of coffee is p= S per pound and the equilibrium quantity is Q=millions of pounds per year. (Enter your responses rounded to two decimal places.)
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
Problem 10P
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Transcribed Image Text:Using the supply and demand functions below, derive the demand and supply curves if Y = $55,000 and p, = $16. What is the equilibrium price and quantity of coffee?
The demand function for coffee is
Q= 8.5 - p+0.01Y,
where Q is the quantity of coffee in millions of pounds per year, p is the price of coffee in dollars per pound, and Y is the average annual household income in high-income countries in thousands of dollars.
The coffee supply function is
Q = 9.6 + 0.5p - 0.2pc.
where p, is the price of cocoa in dollars per pound.
The equilibrium price of coffee is
p = S per pound
and the equilibrium quantity is
Q = millions of pounds per year.
(Enter your responses rounded to two decimal places.)
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