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Q. If the demand function for bananas is given by the following equation:
Qd=54,000-6,000P,
and the supply function for bananas is given by the equation:
Qs = -30,000 + 10,000P.
The price is measured by SR per Kg and the quantity is measured by kilogram.
a. Find out the equilibrium price and equilibrium quantity of bananas.
b. What is the minimum price per Kg. at or below which producer will not be ready to supply any quantity? Explain your answer.
c. What is the maximum price per Kg. at or above which consumers are not ready to demand any quantity? Explain your answer.
d. Price Elasticity of Demand and Price Elasticity of Supply at the equilibrium point.
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