Suppose That King Kanuta from Problem 11 Demands That Each

question 2

Multiple Choice

Suppose that King Kanuta from Problem 11 demands that each of his subjects give him 2 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) = 2,666.67 - 100p_d, where p_d is the price paid by consumers. In equilibrium, the price received by suppliers will be

• A) $8.
• B) $12.
• C) $13.33.
• D) $40.
• E) None of the above.

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Favorable Trend

A pattern or movement in financial or operational data that suggests positive performance or outcomes for a business.

Book Value

The net value of a company's assets found on its balance sheet, and is calculated by subtracting liabilities from the total assets.

Machinery

Equipment, especially those powered by fuel or electricity, used in the industrial production or manufacturing process.