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Homework answers / question archive / Suppose the demand function for avocados is  Q = 104 - 40p + 2Opt + 0

Suppose the demand function for avocados is  Q = 104 - 40p + 2Opt + 0

Economics

Suppose the demand function for avocados is 
Q = 104 - 40p + 2Opt + 0.01Y, where p is the price of avocados, lot is the price of tomatoes, and Y is average income, and the supply function for avocados is Q = 58 + 15p - 20pf, 
where pf is the price of fertilizer. Suppose pt = $0.80, Y = $4,000, and pf = $0.40. What is the equilibrium price and quantity of avocados? The equilibrium price of avocados is 
and the equilibrium quantity is 
Q= 
P = $ 
units. (Enter your responses rounded to two decimal places.) 
Suppose the government charges a $2.20 specific tax per avocado to be paid by consumers. 
With the tax, the equilibrium price of avocados is 
P = $ 
and the equilibrium quantity is 
units. 
 

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