Suppose that the supply schedule of Belgium Cocoa beans is as follows: |Price of cocoa beans (per pound) |Quantity of cocoa beans supplied (pounds) | |$40 |700 | |$35 |600 | |$30 |500 | |$25 |400 | |$20 |300 |
Suppose that Belgium cocoa beans can be sold only in Europe. The European demand schedule for Belgium cocoa beans is as follows: |Price of Belgium cocoa beans (per pound) |Quantity of Belgium cocoa beans demanded (pounds) | |$40 |100 | |$35 |300 | |$30 |500 | |$25 |700 | |$20 |900 |
(a) Draw the demand curve and the supply curve for Belgium cocoa beans. What are the equilibrium price and quantity of cocoa beans from Belgium?
The equilibrium price of cocoa beans is $30 and the equilibrium quantity is 500 pounds. It is the point in the graph where the supply and demand...