Suppose that King Kanuta from Problem 11 demands that each of his subjects give him 3 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) = 7,650 - 100pd, where pd is the price paid by consumers. In equilibrium, the price received by suppliers will be
A) $153.
B) $18.
C) $27.
D) $38.25.
E) None of the above.
Correct Answer:
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