Solution for QID #18575: he estimated global supply function for coffee is Q = 9 + 0. | StudyHelpMe

he estimated global supply function for coffee is Q = 9 + 0.5p. The estimated demand function is Q = 8.5 - p + 0.1 Y, where Y is the average income in thousand of dollars. The initial income is Y = 35 ($35.000). Determine : a. The inital equilibrium price of coffee. b. The inital equilibrium quantity of coffee. c. Determine how the equilibrium price and quantity change if the average income increases by 15 to Y = 50. d. Provide the graph or diagram before and after the change in income (in a graph).