A certain commodity, which we call corn, is grown by many farmers, but the amount of corn harvested by every farmer depends on the weather: sunny weather yields more com than cloudy weather during the growing season. All corn is harvested simultaneously, and the price per bushel is determined by a market demand function. Suppose the price demand function P = Pl(D) is such that Pa= (0)=10 dollars and Pad(500000)=5 dollars, and Pi (D) is linear in D, the demand in bushels.
Then (1) price in terms of demand Pd(D)=dollars.
Through supply and demand equality, the demand equals the total crop size. The amounts produced on different farms are all perfectly correlated and there are a total of 100 farms, and thus D= 100C,
Then (2) price in terms of production P p(c)=.