The quantity of coffee demanded, Qd, depends on the price of coffee, Pc, and the price of tea, Pt. The quantity of coffee supplied, Qs, depends on the price of coffee, Pc, and the price of electricity, Pe, according to the following equation:
Qd = 17 - 2 Pc + 10 Pt
Qs = 2 + 3 Pc - 5 Pe
If the price of tea is $1.00 and the price of electricity is $0.50, what is the equilibrium price and quantity of coffee?
Can someone please solve this with the formula shown and also show full workings. Thanks!
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