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Answer to Question #67169 in Macroeconomics for soumedha Ramkhelawon
Question #67169
Your fruit stall has 100 peaches that must be sold at once. your supply curve for peaches is vertical. From past experience, 100 peaches are demandes when price is £1.
The demand elasticity is -0.5. You discover 10 of your peaches are rotten and cannot be sold. Draw the new supply curve. What is the equilibrium price? Explain your answers in details.
The demand elasticity is -0.5. You discover 10 of your peaches are rotten and cannot be sold. Draw the new supply curve. What is the equilibrium price? Explain your answers in details.
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