(Problem 3.4 in Chapter 2 of Perloff) The estimated Canadian processed pork demand function (Moschini and Meilke, 1992) is Q = 171 - 20p + 20p + 3pc + 2Y, and the supply function is Q = 178 +40p - 60pn. If Ph=1.5 (dollars per kg), p₁= 4 (dollars per kg), p= 3 (dollars per kg), and Y= 12.5 (thousands of dollars), what are the equilibrium price and quantity? Given the estimated demand and supply functions above, what is the equilibrium price of Canadian processed pork? Round your answer to two decimal places.
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- Ethanol, a fuel, is made from corn. Ethanol production increased 9.1 times from 2000 to 2019 (https://ethanolrfa.org/statistics/annual-ethanolproduction/). What effect did this increased use of corn for producing ethanol have on the price of corn and the consumption of corn as food? 1.) Use the line drawing tool to draw either a new demand curve (D₂) or a new supply curve (S₂) that shows how the increased use of corn for producing ethanol affects the market for corn as food. Properly label this line. 2.) Use the point drawing tool to indicate the new market equilibrium. Label this point 'e₂'. Carefully follow the instructions above, and only draw the required objects. $, price of corn Q₁ Q, quantity of corn as food S₁ D₁The demand and supply functions for a particular commodity are D(x) = 80e-0.001x and S(x)= 30e0.001r , where x is the number of units of the product, D(x) is the price that results in a consumer demand of x units and S(x) is the price that results in a producer supply of x units. a. Find the equilibrium point using your calculator and identify the equilibrium units and price. Give your answers to the nearest whole unit and nearest dollar. The value of x at equilibrium is units. The value of p at equilibrium is b. Determine the consumers' surplus.Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is: In(Q) = 0.200 + 0.550 In(p). where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is: In(Qa) = 2.600 - 0.200 In(p) + 0.150 In(p;). where p, is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton. Suppose pt = $109. Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste falls by 7%. If the price of tomato paste falls by 7%, then the equilibrium price will by S . (Enter a numeric response using a real number rounded to two decimal places.)
- The food and feed demand curves used in the Application "Summing the Corn Demand Curves," were estimated by McPhail and Babcock (2012) to be Qfood = 1,487-22.1p and Qfeed = 6,247.5-226.7p, respectively, where Q is measured in billions of bushels of corn per year. Mathematically derive the total demand curve, which the application's figure illustrates. (Hint: Remember that the demand curve for feed is zero at prices above about $27.56 per bushel.) The total demand curve is (enter your responses rounded to one decimal place): Q=-p for p≥ $27.56 per bushel and Q = -p for p <$27.56 per bushel.Consider the demand function for processed pork in Canada, Q. = 590.00 – 36p + 20p, + 3p. + 0.002Y The supply function for processed pork in Canada is: Q. = 442.00 + 52p - 60p, p is the price of pork Pn is the price of beef = $4 per kg Q is the quantity of pork demanded Po is the price of chicken = $3 per kg (measured in millions of kg per year) Y is the income of consumers = $12,500 Ph is the price of a hog = $1.50 per kg Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is $and the equilibrium quantity of pork is million kg per year. (Enter numeric responses using real numbers rounded to two decimal places.) étv MacBook Air DII DD 80 F8 F9 F10 F2 F3 F4 F5 F6 F7We obtain the following demand curve of beef in a market: = 30302.189-4303.602 In (P), where Q is quantity demanded of beef measured in pounds, P is price measured in dollars per pound. We know P = 8.906 and Q=12027.759. Based on this information, if price increases by 1 dollar, quantity demanded decreases by _%. (Only type in the number in your answer, do not type in the percentage sign "%" again.)
- The estimated demand function (Moschini and Meilke, 1992) for Canadian processed pork is Q = 161 - 20p + 20p, + 3pc + 2Y, where Q is the quantity in million kilograms (kg) of pork per year, p is the dollar price per kg, p, is the price of beef in Canadian dollars per kg, Pe is the price of chicken in dollars per kg, and Y is average income in thousands of dollars. What is the demand function if we hold ph, Per and Y at their typical values during the period studied: ph = 4.6, p. = 3.2, and Y = 11.5? Demand as a function of p is (enter your first response rounded to one decimal place and your second response as a whole number): Incor tv 30 MacBook Ai DII 80 F9 F10 F11 F6 F7 F8 FI F2 F3 F4 F5Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is In(Q) = 0.250 +0.450 In(p), Question Viewer where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is In(Q)=2.600 -0.200 In(p) + 0.150 In(pt), where pt is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton. How does the quantity of processing tomatoes supplied vary with the price? It might be easier for you to exponentiate both sides of the equation first. Exponentiating both sides of the supply equation, Q = e(0.250+ 0.450ln(p)) The effect of a change in price on quantity supplied is = (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a fraction can be created with the / character.)1. As an agriculture analyst for the Union of American Fruit Producers (UAFP), you are in charge of monitoring the US peach market. The market can be described by the following "calibrated" demand and supply functions: Qd = 1600-8P +8Pn Qs = 34P-102 (1) (2) where P is the price of a crate of peaches, Pn is the price for a crate of nectarines, and Qd and Q, are the quantity demanded and the quantity supplied of peaches (measured in thousands of crates). (a) Find the inverse demand and inverse supply equations. Hypothetically, how many crates of peaches should UAFP expect consumers to buy if peaches are given away free of charge in a marketing campaign? If the price of a crate of peaches was to increase, at what price would buyers no longer be willing to buy any peaches? (Hint: your previous answers will be expressions that depend on the value of P) If the price of peaches was to decrease, at what price would the quantity of peaches supplied fall to zero? (b) Assuming that P₁ = $55,…
- a) The demand function for a product is p = 60 3-9/15) where q is the number of units and p is the price of one unit. At what price will the demand be 15 units? How many units will be demanded if the price is $41.60?Consider the demand function for processed pork in Canada, Q = 590.00 – 36p + 20p, + 3p. + 0.002Y The supply function for processed pork in Canada is: Q = 442.00 + 52p – 60pn p is the price of pork Ph is the price of beef = $4 per kg Q is the quantity of pork demanded. Pe is the price of chicken = $3 per kg Y is the income of consumers = $12,500 Ph is the price of a hog = $1.50 per kg (measured in millions of kg per year) Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is $ and the equilibrium quantity of pork is million kg per year. (Enter numeric responses using real numbers rounded to two decimal places.) étv 30 MacBook Air DII DD 08 F10 F9 F7 FB esc F4 F5 F6 F2 F3 F1 & @ #3 2$ 3 4 7 8 1 W Y * 001. Congratulations, you've been hired as a market analyst for the Federation of Quebec Maple Syrup Producers (QMSP) and you will be responsible for monitoring the market for maple syrup. The market can be described by the following calibrated demand and supply functions: Qd = 1180-20P +2P, (1) (2) Qs = 50P-200 where P is the price of a 16oz bottle of syrup, Pį is the price for a bottle of maple flavored corn syrup, and Qd and Q, are the quantity demanded and the quantity supplied of maple syrup. (a) How much maple syrup should the QMSP be prepared to give away if they decided to give maple syrup to everyone who wants it free of charge as a marketing ploy? (Hint: your answer will depend on Pt) Find the inverse demand and inverse supply equations. Determine the highest price at which suppliers would not be willing to sell any syrup. (b) Assuming that P, = 10, graph (inverse) supply and (inverse) demand for the market with a clearly labeled graph and calculate the equilibrium price (P*)…