question archive A large number of firms are capable of producing chocolate-covered cockroaches
A large number of firms are capable of producing chocolate-covered cockroaches
Subject:EconomicsPrice: Bought3
A large number of firms are capable of producing chocolate-covered cockroaches. The linear, upward sloping supply curve starts on the price axis at $6 per box. A few hardy consumers are willing to buy this product (possibly to use as gag gifts). Their linear, downward sloping demand curve hits the price axis at $4 per box. Draw the supply and demand curves. Is there an equilibrium at a positive price and quantity? Explain your answer.
