Answer to Question #299526 in Microeconomics for Jga

Question

Suppose the supply of lemonade is given by Q= 40p were q is measured in pints and p is measured in cents per pint and the demand for lemonade is given by Q=5000-10p. Now suppose bumper weather conditions improve the harvest of lemons so producers increase the quantity supplied of lemonade by 200 pints at every price. What are the equilibrium P and Q for a lemonade after the bumper weather conditions

Answer 1

$Quantity demanded=Quantity supplied$

$5000-10p=40p$

$5000=50p$

$p=100cents$

$Q=40*100$

$Q=4000$pints before increase in $QS$

since the quantity supplied has increased by 20 hence, $QS$ is;

$Q=40*200P$ but P is 100 cents

$Q=40*200*100$

$Q=800000 pints$