Question

JUAL LACICISU 3.4 Consider the demand function for processed pork in Canada. Question Q-630.00-37p.20 3. The supply function for processed pork in Canada is 000 p is the price of pork Qis the quantity of pork demanded masured in a peryeart 19.00 se - As the price of bof 54 per kg is the price of chicken per kg Y the income of consumers = $12.500 the price of a log - $1.50 per kg Sve for the equilibrium price and quantity for pork The propisan o g www

Answer 1

Q_d = 630 - 37p + 20p_b + 3p_c + 0.002Y is the given demand function

Now, putting the values of p_b , p_c and Y,

Q_d = 630 - 37p + (20*4) + (3*3) + (0.002*12,500)

or, Q_d = (630+80+9+25) - 37p

or, Q_d = 744 - 37p is the required demand function

Again, Q_s = 462 + 56p - 60p_h is the given supply function

Now, putting the value pf p_h,

Q_s = 462 + 56p - (60*1.5)

or, Q_s = 372 + 56p is the required supply function

For equilibrium, Demand = Supply

or, 744 - 37p = 372 + 56p

or, 93p = 372

or, p = $4 is the equilibrium price

and Q = 744-37p = 744-(37*4) = 596 million kg is the equilibrium quantity