question archive he estimated global supply function for coffee is Q = 9 + 0
he estimated global supply function for coffee is Q = 9 + 0
Subject:EconomicsPrice: Bought3
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).
