Question

Fresno County, California is the largest agricultural producing county in the country and almonds are an important crop with more than 99,000 acres harvested. Each acre produces about a ton of almonds and sold at a price of $4300 a ton. The Sagardia Brothers grew 600 acres of almonds . How many tons would the brothers sell if they priced the almonds at $4500 a ton?

Answer 1

Answer:

0 ton

Step-by-step explanation:

The question states that 99,000 acres are harvested. This suggest that there are plenty sellers of almonds.The Sagardia Brothers grew 600 acres of almonds. this is a small percentage of the total output of almonds. This suggests that the market for almonds is perfectly competitive.

In this type of market, if the price of a seller is above equilibrium price, zero units of the commodity would be bought. This is because the goods sold are homogenous and buyers can easily purchase from other buyers that sell at the market price