ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Suppose the demand function for avocados is
Q=104-40p + 20p₁ +0.01Y,
where p is the price of avocados, p, is the price of tomatoes, and Y is average income, and the supply function for
avocados is
where p, is the price of fertilizer.
Suppose p = $0.80, Y = $4,000, and p = $0.40. What is the equilibrium price and quantity of avocados?
The equilibrium price of avocados is
and the equilibrium quantity is
Q=58+15p -20pf,
and the equilibrium quantity is
p=$2
Q = 80 units. (Enter your responses rounded to two decimal places.)
Suppose the government charges a $2.20 specific tax per avocado to be paid by consumers.
With the tax, the equilibrium price of avocados is
p=$
Q=
units.
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Transcribed Image Text:Suppose the demand function for avocados is Q=104-40p + 20p₁ +0.01Y, where p is the price of avocados, p, is the price of tomatoes, and Y is average income, and the supply function for avocados is where p, is the price of fertilizer. Suppose p = $0.80, Y = $4,000, and p = $0.40. What is the equilibrium price and quantity of avocados? The equilibrium price of avocados is and the equilibrium quantity is Q=58+15p -20pf, and the equilibrium quantity is p=$2 Q = 80 units. (Enter your responses rounded to two decimal places.) Suppose the government charges a $2.20 specific tax per avocado to be paid by consumers. With the tax, the equilibrium price of avocados is p=$ Q= units.
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