Suppose That King Kanuta, Whom You Met in Your Workbook

question 45

Multiple Choice

Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 1 coconut 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) = 1,500 - 100p_d, where p_d is the price paid by consumers.In equilibrium, the price received by suppliers will be

• A)$6.
• B)$9.
• C)$7.50.
• D)$15.
• E)None of the above.

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Definitions:

Common Law

A legal system based on custom and court rulings rather than written laws.

Pledge Form

A document or form that is filled out to indicate a commitment to donate a specified amount of money or resources, often used by charities and non-profit organizations.

Charity

An organization set up to provide help and raise money for those in need.

Reasonable Price

A price that is fair and suitable for the value or quality of goods or services provided, often considered in a legal context.