markets4 - melons to the left, to the right, or have no...

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Additional Problem 4: Market Analysis The demand for cantaloupes is P = 120 - 3 Qd, and the supply is P = 5 QS, where P is the price per pound (in cents) of a cantaloupe, Qd is the quantity demanded per year, and Qs the number supplied (both in millions of pounds). 1. What is the equilibrium price per pound of a cantaloupe? What is the equilibrium quantity of cantaloupes produced? Show your work graphically, numerically, and explain. 2. Indicate whether each of the following will shift the demand curve for cantaloupe
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Unformatted text preview: melons to the left, to the right, or have no effect on it: (a) a report by the U.S. Surgeon-General that cantaloupes cause cancer. (b) an increase in the price of honeydew melons, a substitute. (c) an increase in per capita income. (Assume cantaloupe is a superior/normal good.) (d) an increase in the wages of workers picking cantaloupes. (Assume that an wages income.)...
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