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Q. Qs=1,000+10,000P-5,000PL-500Pc
QD=45,000-12,500P+4I+2,500Ps
Q is measured in 50 pound cases, P is the price every case in dollars, PL is the price of unskilled labor in dollars (the wage rate = $6), PC is the price of capital as a percentage, I is family ncome also PS is the price of California oranges. Derive (solve for) the suppy also demand curves for Florida growers assuming the subsequent values for the independent variables. PL=$3, Pc=!2% (do not convert to a decimal), I=@5,000 also Ps=$6. Illustrate what is the equilibrium price also quantity for oranges? Assume the price of labor increases to $8 (Ps=$8) Illustrate what occurs in this marketplace?
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