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(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) = 6,000 - 100p_d, where p_d is the price paid by consumers. In equilibrium, the price received by suppliers will be

A) $30.
B) $18.
C) $90.
D) $27.
E) None of the above

Correct Answer:

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