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a) What is the equilibrium price and quantity (P* and Q*) in the market for oranges with the following conditions?
Supply: Q= 15+P
Demand: Q=25-P
b) An event in Florida changed the supply of oranges. Demand did not change. The new supply equation is Q=5+P What is the new equilibrium price and quantity?
c) Was the event in Florida that changed the supply of oranges an increase in supply or a decrease in supply? How do you know? Use a graph (it does not have to be accurately drawn to represent the plot points of the curves above) if necessary.
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