question archive he estimated global supply function for coffee is Q = 9 + 0

Subject:EconomicsPrice: Bought3

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).