8. 01 and 22. are the quantities produced in Regioni and Region where 01-50 million tons and Q2 = 30 million tons; Q1' and Q2' are the quantities demanded including imports; Rs equal to transfer cost/unit, Pi is equilibrium price in Regioni and P1+R is the equilibrium price in Region2 with trade (30 points) QI'ma + BP1 Q2' = a + B (P1 + R) Q1 +02 01' +02 (Demand = Supply) The known parameters are a = 100; 3 =-0.6; R=$10, and Q1and Q2* as given above. The unknown parameters are P1, Q1', and Q2'. 3. Using the above three equation system, determine the three unknown parameters. b. Using the values of the parameters given above, find out the total production, consumption, and import/export in Regioni and Region2 9. Assume there are two farmers (X and Y) and two marketing centers (US and THEM). The prevailing price at US is $5.00 and the prevailing price at THEM is $5.20. It costs $0.60 to transport products between US and THEM. It costs $0.10 for Farmer X to transport products to US and $0.30 to transport to THEM. It costs $0.30 for Farmer Y to transport to US and $0.10 to transport to THEM. Construct a market boundary diagram representing this situation and indicate which farmer transports to which market center. 8. 01 and 22. are the quantities produced in Regioni and Region where 01-50 million tons and Q2 = 30 million tons; Q1' and Q2' are the quantities demanded including imports; Rs equal to transfer cost/unit, Pi is equilibrium price in Regioni and P1+R is the equilibrium price in Region2 with trade (30 points) QI'ma + BP1 Q2' = a + B (P1 + R) Q1 +02 01' +02 (Demand = Supply) The known parameters are a = 100; 3 =-0.6; R=$10, and Q1and Q2* as given above. The unknown parameters are P1, Q1', and Q2'. 3. Using the above three equation system, determine the three unknown parameters. b. Using the values of the parameters given above, find out the total production, consumption, and import/export in Regioni and Region2 9. Assume there are two farmers (X and Y) and two marketing centers (US and THEM). The prevailing price at US is $5.00 and the prevailing price at THEM is $5.20. It costs $0.60 to transport products between US and THEM. It costs $0.10 for Farmer X to transport products to US and $0.30 to transport to THEM. It costs $0.30 for Farmer Y to transport to US and $0.10 to transport to THEM. Construct a market boundary diagram representing this situation and indicate which farmer transports to which market center
