[please show all steps thanks!] A food product is either organic or non-organic and the consumers can't tell them apart. Consumers WTP (willingness to pay) for an organic product is 100, while for a non- organic product the WTP is 30. Sellers who produce organic products are willing to sell if the price is above 70, and the sellers who produce non-organic products are willing to sell their product if the price is above 20. What is the minimal q (the share of organic products in the market) for which a pooling equilibrium exists?

[please show all steps thanks!] A food product is either organic or non-organic and the consumers can't tell them apart. Consumers WTP (willingness to pay) for an organic product is 100, while for a non- organic product the WTP is 30. Sellers who produce organic products are willing to sell if the price is above 70, and the sellers who produce non-organic products are willing to sell their product if the price is above 20. What is the minimal q (the share of organic products in the market) for which a pooling equilibrium exists?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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