Suppose That King Kanuta from Problem 11 Demands That Each

question 9

Multiple Choice

Suppose that King Kanuta from Problem 11 demands that each of his subjects give him 3 coconuts for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by S(p_s) = 100p_s, where p_s is the price received by suppliers. The demand for coconuts by the king's subjects is given by D(p_d) = 7,650 - 100p_d, where p_d is the price paid by consumers. In equilibrium, the price received by suppliers will be

• A) $153.
• B) $18.
• C) $27.
• D) $38.25.
• E) None of the above.

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Definitions:

Articles of Partnership

Articles of Partnership is a document that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Annual Salary

The total amount of money an employee earns in a year before deductions for taxes and other items.

Capital Balance

The amount of money that an individual or entity has contributed towards the capital of a company, often reflected in the equity section of a balance sheet.