Suppose the demand and supply curves of coffee are given by:

q_D = 1,500 + p

q_S = 500 + 2p

Calculate equilibrium quantity.

2500

The correct answer is Option 2: 2500

At equilibrium, market supply = market demand. Equating them, we get

1500+p = 500+ 2p

1500-500 = 2p - p

1000 = p

Putting p = 1000 in any equation, we get q = 1500+p = 1500+1000 = 2500.

So equilibrium quantity is 2500.