Question

The estimated demand function (Moschini and Meilke, 1992) for Canadian processed pork is -161-20p 20p+3pc 2 where Q is the quantity in million kilograms (kg) of pork per year, p is the dollar price per kg, Pb is the price of beef in Canadian dollars per kg, Pc is the price of chicken in dollars per kg, and Y is average income in thousands of dollars. What is the dernand function if we hold Pb. Pc and Y at their typical values during the period studied: P 4., Pc 3.5, and Y 13? Demand as a function of p is (enter your first response rounded to one decimal place and your second response as a whole number,)

The estimated demand function​ (Moschini and​ Meilke, 1992) for Canadian processed pork is

Q = 161 − 20p + 20pb + 3pc +​ 2Y,

where Q is the quantity in million kilograms​ (kg) of pork per​ year, p is the dollar price per​ kg, pb is the price of beef in Canadian dollars per​ kg, pc, 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 pb, pc, and Y at their typical values during the period​ studied:

pb = 4.6, pc = 3.5, and Y = 13?

Demand as a function of p is ​(make your response rounded to one decimal place and your second response as a whole

​number)​: Q = ____ − ____ p.

Answer 1

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As per the given data of information Here, Q = 161 - 20p + 20Pd + Pc + 2y, rightarrow equation (1) Pb = 4.6 Pc = 3.54 y = 13 Substitute Pb, Pc 4y values is equation (1), then Q = 161 - 20p + 20Pd + Pc + 2y = 161 - 20p + 20(4.6) + 3(3.5) + 2(13) = 161 - 20p + 92 + 10.5 + 26 Q = 289.5 - 20p rightarrow equation (2) Therefore, Demand as a function of P: Q = 289.5 - 20p