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 1 coconut 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(p_s) = 100p_s, where p_s is the price received by suppliers. The demand for coconuts by the king's subjects is given by D(p_d) = 1,500 - 100p_d, where p_d is the price paid by consumers. In equilibrium, the price received by suppliers will be

A) $6.
B) $9.
C) $7.50.
D) $15.
E) None of the above.

Correct Answer:

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