There are two closely related crops,X and Y,with the following demand functions Q_X= 180 - 2P_X + P_Y and Q_Y = 150 + P_X - P_Y where Q_X is the quantity of X,P_X is the price of X,Q_Y is the quantity of Y,and P_Y is the price of Y.These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves.The short-run perfectly inelastic supply for X is 200 while the short-run perfectly inelastic supply for Y is 100.In equilibrium,the prices are

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The correct answer is A because in equilibrium, the quantity demanded of each crop must equal the quantity supplied. For crop X, we have Qx = 180 - 2Px + Py = 200, which implies that Px = 30. For crop Y, we have Qy = 150 + Px - Py = 100, which implies that Py = 80.

There Are Two Closely Related Crops,X and Y,with the Following