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The demand function for coffee is given by Dc

The demand function for coffee is given byDc= 100−2pc+ 0.5ptand that for tea is given byDt= 120−pt+ 0.75pcwhere pc is the price of coffee and ptis the price of tea. The respective supplyfunctions areSc= 10 + pc+ 5wcSt= 5 + 2pt+ 2wtwhere wc and wtare the indexes of weather conditions affecting productionof coffee and tea respectively. Interpret these supply and demand functions.Give the comparative-statics effects

 

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