Suppose the estimated supply function for avocados is given by Q S 58 15 p 20 p f , where p f is the price of fertilizer The estimated demand for avocados is given by Q d 144 40 p 20 p t , where p t is the price of tomatoes per pound (3) Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer, p f ,is equal to $0 40 per lb and price of tomatoes, p t , is equal to $0 80 per lb (3) Solve for the new equilibrium price and quantity of avocados if the price of fertilizer, p f , increases to $1 10 per lb and price of tomatoes, p t , remains $0 80 per lb (3) Use these equilibrium values from parts a and b to solve for the price elasticity of demand for avocados (2) Given your calculations, are avocados elastic, inelastic or unit elastic Has the total revenue of avocado producers increased, decreased, or not changed as a result of the change in price and quantity

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Question: Suppose the estimated supply function for avocados is given by Q S = 58 + 15 p - 20 p f , where p f

Suppose the estimated supply function for avocados is given byQ_S = 58 + 15p -20p_f , wherep_fis the price of fertilizer. The estimated demand for avocados is given byQ_d = 144 -40p +20p_t , wherep_tis the price of tomatoes per pound.

(3) Solve for the initial equilibrium price and quantity of avocados if the price of fertilizer,p_f,is equal to $0.40 per lb. and price of tomatoes,p_t, is equal to $0.80 per lb.
(3) Solve for the new equilibrium price and quantity of avocados if the price of fertilizer,p_f, increases to $1.10 per lb. and price of tomatoes,p_t, remains $0.80 per lb.
(3) Use these equilibrium values from parts a. and b. to solve for the price elasticity of demand for avocados.
(2) Given your calculations, are avocados elastic, inelastic or unit-elastic? Has the total revenue of avocado producers increased, decreased, or not changed as a result of the change in price and quantity?

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