Green, Howitt, and Russo (2005) estimate the supply and demand curves for California processing tomatoes. The supply
Question:
Green, Howitt, and Russo (2005) estimate the supply and demand curves for California processing tomatoes. The supply function is ln Q = 0.2 + 0.55 ln 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 ln Q = 2.6 - 0.2 ln p + 0.15 ln pt, where pt is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton. In 2002, pt = 110. What is the demand function for processing tomatoes, where the quantity is solely a function of the price of processing tomatoes? Solve for the equilibrium price and the quantity of processing tomatoes (rounded to two digits after the decimal point). Draw the supply and demand curves (note that they are not straight lines), and label the equilibrium and axes appropriately
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
Equating the right sides of the supply and demand functions and using algebra ...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).