Homework 3: Market Analysis with Equilibrium Displacement Models Table 1 shows estimates of supply and demand elasticities for the U.5. pork and beef market. Use the table to answer the questions below. Table 1. Longrun Elasticities of Supply and Demand for Pork and Beef. Price elasticity of pork supply Ownprice elasticity of pork demand Crossprice elasticity of pork demand with respect to beef price \" Price elasticity of beef supply \" Ownprice elasticity of beef demand \" Crossprice elasticity of beef demand with respect to pork price (Source: Norwood and Lusk, Table 3.2} 1. Define the price elasticity of pork supply. 2. Calculate the effect of a 2% decrease in the pork price on pork production. 3. Define the ownprice elasticity of demand for pork. 4. Calculate the effect of a 5% decrease in the quantity of pork available on the price of pork [assuming supply of pork is perfectly inelastic}. 5. Calculate the shift in pork demand that would result from a 10% increase in the price of beef. Draw a demand graph that depicts the shift. 6. Write down the equation for pork demand in elasticity fo rm, including a single parameter [6} as a demand shifter. 7. Write down the equation for pork supply in elasticity form, including a single parameter (8]: as a supply shifter. 8. What are the values for 5 and B that you would use to calculate the effect of a 10% increase in beef price on longrun equilibrium price and quantity in the pork market? El. Calculate the changes in equilibrium price and quantity in the pork market that would result from a 10% increase in price of beef. 10. Suppose the US. government imposed a new regulation on manure management practices that increases the marginal cost of producing pork by 2%. Calculate the horizontoi shift in the pork supply curve that would result from the regulation. (Hint: use the price elasticity of pork supply.) 11. What are the values for 6 and B that you would use to calculate the effect of the manure regulation on | equilibrium price and quantity in the pork market? 12. Calculate the changes in longrun equilibrium price and quantity in the pork market that would result from the regulation. 13. How would your answer to 12 ding; if pork demand were more elastic