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The supply and demand for broccoli are described by the following question:
Demand: Qd= 100-P
Supply: Qs= 10P-10
a) What if the instructor just gave you Q=10P- 10 and Q= 100-P, leave out the Qs and Qd? How do you know which equation is the supply curve and the demand curve? Explain?
b) Suppose there is a storm that destroys a lot of the cauliflower farm. If broccoli and cauliflower are considered substitutes, how will this change in the cauliflower market impact the broccoli market? Be sure to create two graphs, one to explain the change in the broccoli marker and the other to explain the change in the cauliflower market?
c) Suppose the price of broccoli increase from $2 to $3. Using one of the equations above, calculate the price elasticity of supply when the price increase from $2 to $3. Inelastic, elastic or unitary elasticity
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