Suppose that King Kanuta from Problem 11 demands that each of
his subjects give him 4 coconuts for every coconut that they
consume. The king puts all of the coconuts that he collects in a
large pile and burns them. The supply of coconuts is given by S(ps)
= 100ps, where ps is the price received by suppliers. The demand
for coconuts by the king’s subjects is given by D(pd) = 10,400 -
100pd, where pd is the price paid by consumers. In equilibrium, the
price received by suppliers will be
a. $20. b. $52. c. $30. d. $260. e. None of the above.
Equilibrium is when demand is equal to supply
100p = 10400 -100p
Which implies 200p = 10400
which implies p= 10400/200 = $52
Therefore (b) $52 is the answer to the question
Suppose that King Kanuta from Problem 11 demands that each of his subjects give him 4...
Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 2 coconuts for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by S(ps) = 100ps, where ps is the price received by suppliers. The demand for coconuts by the king’s subjects is given by D(pd) = 6,000 – 100pd, where pd is...
Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 2 coconuts for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by S(p.) 100ps, where p, is the price received by suppliers. The demand for coconuts by the king's subjects is given by Díp) -6,000 100p4 where pa is the price paid...
33. Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him I coconut for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by Sup)100p., where p, is the price received by suppliers. The demand for coconuts by the king's subjects is given by Dipa) -1,500 100pa where pa is the price paid...
Remember King Kanuta and his tropical island? The demand function for coconuts by his subjects on the island is D(p)1,200100p and the supply function is S(p)100p. The law used to be that any subject who consumed a coconut had to pay another coconut to the king. King Kanuta then ate all the coconuts he got. But now the king, apparently fed up with coconuts, decides to sell the coconuts that he collects in the local market at the going selling...