ZuoTi.Pro
Question

The following equation shows the pork demand in China where I represent income and PC represents...

The following equation shows the pork demand in China where I represent income and PC represents the price of chicken.

Qd = 500-4P+PC+0.3I (Q is in 1000 pound)

a) Find the demand equation when PC = 900 and I= 12000.

b) If P=800, what is the price elasticity of demand for the pork? (2)

c) Given 13.2 and 13.3, what is the income elasticity of demand?

d) Given 13.2 and 13.3, What is the cross-price elasticity of demand for pork and chicken?

e) Are pork and chicken demand substitute or demand complements? Would sales of pork be increase or decrease if price of chicken falls?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

I 500- 4P + e + 0.3 Oo - 900 (1) 12000 O - - o = 500-4P + 1900) + 0.3 (12000) Soo- up + 4500 5000-YP & benes Demand equation(c) Od = 500 - 4P + P + 0.37 In come elasticity of demand lome By I we get ? putting value of p, f, and Od = 1800Income elasticity 2ooo (d) Cross-elasticity of demand for Pork and chicken 0 = 500*-up + P + 0. 31 by putting all values of Pis rel The cross- elasticity of demand Il for pork and chicken positive this implies pork and chicken are substitutes. So As

0 0
Add a comment
Know the answer?
Add Answer to:
The following equation shows the pork demand in China where I represent income and PC represents...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Given the following demand equation Qd = 100 - 15P + 20I - 10Pc + 20Ps where I is income and is equal to 200; Pc is the...

    Given the following demand equation Qd = 100 - 15P + 20I - 10Pc + 20Ps where I is income and is equal to 200; Pc is the price of a complement and is equal to 30; and Ps is the price of a substitute and is equal to 60. The supply curve is given as Qs = 15P. Calculate the equilibrium price and quantity, Please explain in detail.

  • Part 1: Short Answer Questions (10 points each) 1) The estimated Canadian processed pork demand and...

    Part 1: Short Answer Questions (10 points each) 1) The estimated Canadian processed pork demand and supply functions are as the follow- ings: Qp = 100-3 p + 3 p + 5 + 2 Y, Os = 100 + 6 - 8 PA where Q is the quantity in million kilograms (kg) of pork per year; p is the dollar price per kg, Po is the price of beef per kg, pe is the price of chicken per kg, P,...

  • Assume Pork and chicken market in China is perfectly competitive and 1000 firms are producing the...

    Assume Pork and chicken market in China is perfectly competitive and 1000 firms are producing the pork. Following equations shows the TC for the production for short run and long run. Qd = 5000-4p STC(q) = 100 + 10q +q2 TC(q) = 100q – 2q2 + 0.2 q3 13.6 What is the short run shut down price, Ps? 13.7 Given 13.6, what is the equation for the short run supply curve for a producer? 13.8 What is the short run...

  • Consider the following demand equation for good a. Good a demands is a function of income...

    Consider the following demand equation for good a. Good a demands is a function of income (Y) and prices of good b and c. QDa(p,Y,pb,pc) = 12 − 3pa + 5Y −3pb +4pc. Pa = 2 Y=500 Pb = 3 Pc = 5 a. Calculate elasticity of demand. Does it respect law of demand? is it elastic or inelastic? Why? b. Calculate elasticity of income. Is it inferior or nomal good? Why? c. Calculate cross-price elasticities with good b. Is...

  • Given the following demand function for Beef Qb = 10 – 6Pb + 4Pc +2I Where:...

    Given the following demand function for Beef Qb = 10 – 6Pb + 4Pc +2I Where: Qb is quantity of beef, Pb is price of beef, Pc is price of chicken and I is income. 1. If Pc = 4 and I = 10. Calculate and interpret the price elasticity of demand for beef when Pb goes from 4 to 6. 2. If Pb = 4 and I = 10. Calculate and interpret the cross price elasticity of demand for...

  • 1) The estimated Canadian processed pork demand and supply functions are as the follow- ings: 100-3p+3...

    1) The estimated Canadian processed pork demand and supply functions are as the follow- ings: 100-3p+3 p 5 p+2 Y Qs=100+6p- 8 Ph 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 per kg, Pe is the price of chicken per kg, Ph is the price of hogs per kg, and Y is the average income in thousand dollars. Suppose that p, $8.00...

  • 2. The demand for Pepsi is given by the following demand functiorn: where PPepsi is own...

    2. The demand for Pepsi is given by the following demand functiorn: where PPepsi is own price, I is income, PCoke is the price of a substitute good, and A is advertising expenditure. a) Write out the formula for: i. Own-price elasticity of demand ii. Income elasticity of demand iii. Cross-price elasticity of demand iv. Advertising elasticity of demand (b) Calculate the elasticities for i, ii, iii, and iv in (a) if Pepsi-5, 1-100, Poke-7. and A -20 For part...

  • The following represents demand for widgets (a fictional product): QD = 700 – 100P + 0.05M...

    The following represents demand for widgets (a fictional product): QD = 700 – 100P + 0.05M – 30PR where P is the price of widgets, M is income, and PR is the price of a related (fictional) good, the wodget. Supply of widgets is determined by Qs= 900 + 57.5P Determine whether widgets are a normal or inferior good, and whether widgets and wodgets are substitutes or complements.   Assume that M = $61,000 and PR = $250.00. Solve algebraically to...

  • PLEASE answer ALL questions Answer All Questions (100 points) 1. Given the following diagrams: Q-20 bags....

    PLEASE answer ALL questions Answer All Questions (100 points) 1. Given the following diagrams: Q-20 bags. O2-15 bags. Os-27 bags. The market equilibrium price is $45 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $55 per bag. The price at point e is $35 per bag. The price at point fis $59 per bag. The price at point g is $31 per...

  • 7. Suppose the demand for lychees is given by the following equation: 100P 500PM, where P...

    7. Suppose the demand for lychees is given by the following equation: 100P 500PM, where P is the price of lychees and P, is the price of mangoes What happens to the demand for lychees when the price of mangoes goes up? Are lychees and mangoes substitutes or complements? a. b. Graph the demand curve for lychees when Pu2 Now suppose that the quantity of lychees supplied is given by the following equation: 1500P- 60R, where R is the amount...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT