The quantity of coffee demanded, Qd, depends on the price of coffee, Pc, and the price of tea, Pt. The quantity of coffee supplied, Qs, depends on the price of coffee, Pc, and the price of electricity, Pe, according to the following equation: Qd = 17 - 2 Pc + 10 Pt Qs = 2 + 3 Pc - 5 Pe If the price of tea is $1.00 and the price of electricity is $0.50, what is the equilibrium price and quantity of coffee?
The question belongs to Economics and it is about calculating the equilibrium price and quantity of coffee with given dependants such as price of tea, supply of coffee, etc. The calculations have been clearly given in the solution.
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