Question

Suppose the individual demand equation for bananas is Qd= 50-10Px and the individual supply equation is expressed as Qs=10Px

Answer 1

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c . The simplest part is finding the equilibrium point "mathematically" (it is better to say "algebraically"). For this, we have to equate Q_d and Q_s: 50-10P_x = 10P_x. This is a simple linear equation that becomes 50 = 20 P_x and P_x = 2.5 (units are probably $/kg). The supply and...

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