The supply and demand for florida orange juice

Reference no: EM13669590

Please provide the answers to this problem and explain how they came up with the answer.

#5. The supply and demand for Florida orange juice are as follows:
QD = 4,500,000 - 1,200,000P + 2,000,000Ps + 1,500Y + 100,000T
QS = 8,000,000 + 2,400,000P - 500,000PL - 80,000Pk - 120,000T
(Where P is the average price of orange juice, Ps is the average price of soda, Y is disposal income per household, T is the average daily high temperature, PL is the average price of unskilled labor, and Pk is the cost of capital).
Assume that Ps = $5.00, Y = 12,000, T = 75, PL = $6, and Pk = 12.5
a. Calculate the quantity demanded, the quantity supplied, and the shortage or surplus when P = $10, $15, and $20
b. Calculate the market equilibrium price-output combination

Reference no: EM13669590

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