.Explain these questions.

1) The estimated Canadian processed pork demand and supply functions are as the follow- ings: Qp = 100-3 p + 3 /s + 5 p + 2Y, Q = 100 +6 p - 8/ where Q is the quantity in million kilograms (kg) of pork per year; p is the dollar price per kg. pe is the price of beef per kg, pe is the price of chicken per kg, pa is the price of hogs per kg, and Y is the average income in thousand dollars. Suppose that ps = $8.00 per kg, p. = $6.00 per kg, p; = $4 per kg, and 1 = $11. Answer the following questions. (Note that you need to show your calculations and explain your results to receive full credit!) a) Assuming ceteris paribus, calculate price elasticity of supply and demand at the equilib rium price and quantity under the conditions stated in above and explain your results. Are the demand and supply at equilibrium elastic? Explain. b) Using the price elasticity of demand, calculate how much the price would have to rise for consumers to demand 28 fewer million kg than the equilibrium quantity? c) What is the income elasticity of demand at the market equilibrium quantity, where Y=$1 1? Is pork a normal good? Assuming all else unchanged, if the average income increases by 20%, what would be the expected change in the demand for pork? d) If the demand function (Qp = 100 -3 p + 3 / + 5 p + 2 Y) is then re-estimated using5. Consider a Solow growth model with population growth rate n > 0. Assume the technology growth rate is 0. Let k*(s) be the steady-state capital-labor ratio given savings rate s. (a) Show that the steady-state capital-labor ratio k* (s) is increasing in the savings rate s. (b) Express the steady-state per-capita consumption c* as a function of savings rate s. (c) Using the function above, express the condition for the savings rate s* that maximizes the steady-state per-capita consumption (i.e., what condition(s) would s* have to satisfy?). (Such a savings rate is called the golden-rule savings rate.) (d) Assume Cobb Douglas production function F(K, L) = KoLl-a where 0