Question

1. Here is the demand for coconuts:

P            3          4            5        6         7          8         9          10         11         12          13

Q_D          1100      1000      900      800      700      600      500        400        300        200        100

And here is supply

P            3          4         5        6          7        8           9          10     11      12          13

Q_S           100        200        300        400        500        600        700        800        900        1000       1100

Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus. Again, let me reiterate: I WANT NUMBERS FOR CONSUMER AND PRODUCER SURPLUS! Furthermore, I want you to do this the way that I do (in other words, calculate it like it's a bunch of rectangles. Don't do the triangle thing that they do in the videos. Also, when doing this keep in mind that the width of these rectangles will not be 1 so be careful. (What is it? )

2. Which do you think is more elastic: demand for coffee or demand for Starbucks coffee? Show the demand for both. (Make sure to say which one is more elastic, so I know that you know.)

Answer 1

Demand for coffee is more inelastic than demand for Starbucks coffee, as when price of Starbucks coffee increases, people can easily shift to other types of coffee but if price of coffee increases people who prefers coffee can't easily change their demand

So, demand for coffee is stepper than demand for Starbucks coffee.