The world-wide demand curve for pistachios is given by Qd = 10 - P, where P is
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where T is the average temperature (measured in degrees Fahrenheit) in pistachio-growing regions such as Iran. The supply curve implies that as the temperature deviates from the ideal growing temperature of 70o, the quantity of pistachios supplied goes down. Let P* denote the equilibrium price and Q* denote the equilibrium quantity. Complete the following table showing how the equilibrium quantity and price vary with the average temperature. Verify that when T = 70, the equilibrium price is $1 per kilogram and the equilibrium quantity is 9 million kilograms per year.
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