Question

Remember king kanuta and his tropical island? the demand function for coconuts by his subjects on the island is d(p) = 1,200 - 100p and the supply function is s(p) = 100p. the law used to be that any subject who consumed a coconut had to pay another coconut to the king. king kanuta then ate all the coconuts he got. but now the king, apparently fed up with coconuts, decides to sell the coconuts that he collects in the local market at the going selling price, ps. in equilibrium, the number of coconuts that will now be produced is

Answer 1

By solving the equations where the demand equals the supply, the equilibrium quantity of coconuts produced on King Kanuta's tropical island is determined to be 600.

Step-by-step explanation:

To ascertain the equilibrium quantity of coconuts produced on King Kanuta's island, we must determine at which price the quantity demanded equals the quantity supplied. This is achieved by setting the demand function, d(p) = 1,200 - 100p, equal to the supply function, s(p) = 100p. Solving these equations will give us the equilibrium price (p), and substituting this price into either the demand or supply function will provide the equilibrium quantity.

Solving for the equilibrium, we have:

1. Set d(p) = s(p): 1,200 - 100p = 100p.
2. Solve for p: 1,200 = 200p, therefore p = 6.
3. Substitute p into the supply function to get s(6) = 100 * 6 = 600 coconuts produced.

Thus, in equilibrium, 600 coconuts will be produced and sold on King Kanuta's island.

Answer 2

In equilibrium, 600 coconuts will be produced on King Kanuta's tropical island when setting the demand function equal to the supply function and solving for the quantity.

Step-by-step explanation:

To find the number of coconuts that will be produced in equilibrium, we need to set the demand function d(p) equal to the supply function s(p). According to the information provided:

• The demand function is d(p) = 1,200 - 100p.
• The supply function is s(p) = 100p.

In equilibrium, demand equals supply:

• 1,200 - 100p = 100p

Solving for p:

• 1,200 = 200p
• p = 1,200 / 200
• p = 6

Now, we substitute p = 6 into the supply function to find the equilibrium quantity:

• s(6) = 100 * 6
• s(6) = 600

So, in equilibrium, 600 coconuts will be produced.