The demand for sugar is: Q = 20 - P The supply of sugar is: Q = 2 + P 1) Find the equilibrium...

Question

The demand for sugar is: Q = 20 - P
The supply of sugar is: Q = 2 + P
1) At equili
ium,
Demand = Supply
20 – P = 2 + P
Or, P* = 9
Therefore, Q* = 2 + 9 = 11
2) the government sets a support price for sugar at $10 per cwt. (
Therefore,
0
5
10
15
20
25
0 5 10 15 20 25
Price
Quantity
Equili
ium...

Robert · Accepted Answer

The demand for sugar is: Q = 20 - P
The supply of sugar is: Q = 2 + P
1) At equilibrium, 
Demand = Supply 
20 – P = 2 + P 
Or, P* = 9 
Therefore, Q* = 2 + 9 = 11
2) the government sets a support price for sugar at $10 per cwt. ( 
Therefore,

The demand for sugar is: Q = 20 - P The supply of sugar is: Q = 2 + P 1) Find the equilibrium quantity. Explain graphically 2) Suppose the government sets a support price for sugar at $10 per cwt....

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