Suppose that King Kanuta from Problem 11 demands that each of his subjects give him 4 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(ps) = 100ps, where ps is the price received by suppliers. The demand for coconuts by the king’s subjects is given by D(pd) = 10,400 - 100pd, where pd is the price paid by consumers. In equilibrium, what will be the price received by suppliers?
 

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Equilibrium price for coconuts in King Kanutas market In this scenariothe king... View the full answer