Question: suppose that king kanuta whom you met in your workbook...
Suppose that King Kanuta, whom you met in your workbook, demands that each of his subjects give him 2 coconuts for every coconut that they consume. The king puts all of the coconuts that he collects in a large pile and burns them. The supply of coconuts is given by S(ps) = 100ps, where ps is the price received by suppliers. The demand for coconuts by the king’s subjects is given by D(pd) = 6,000 – 100pd, where pd is the price paid by consumers. In equilibrium, the price received by suppliers will be a. $30.