New Demand Curve for Questions 38 through 51.

38.Assume an alternative Demand Curve for chickens is estimated by the equation Q_D= 15.60 - 4.80P with quantity measured in billions of chickens per year and price measured in dollars per chicken.The Supply Curve remains the same at:Q_S= 2.00 + 4.0P.Calculate the equilibrium price of chicken and enter the answer on the spreadsheet as dollars and cents, for example $1.13 or $3.21.

Price:

39.Using the demand and supply functions in question 34.,calculate the equilibrium quantity of chicken and enter the answer on the spreadsheet as a number with 2 decimals, for example 9.73 or 4.71.

Quantity:

40.Using the information in question 38, at the equilibrium price and quantity, calculate the amount consumers spend on the product and the industry's revenue and enter the answer on the spreadsheet as dollars and cents in billions, for example $45.32 or $6.55.

Spending and Revenue:

41.Using the information in question 38, at the equilibrium price and quantity, calculate the Consumers' Surplus and enter the answer on the spreadsheet as dollars and cents in billions, for example $2.51 or $16.73.

Consumers:

42.Using the information in question 38, at the equilibrium price and quantity, calculate the Producers' Surplus and enter the answer on the spreadsheet as dollars and cents in billions, for example $5.14 or $11.31.

Producers:

43.At the equilibrium price and quantity, the Price Elasticity of Demand [using the "point price elasticity"] is:

a.-0.82

b.-0.91

c.-1.02

d.-1.60

e.-1.67

44.Assume now the Agriculture Department approves the plan to increase processing-line speeds by 25% and as a result, the quantity supplied at any price increases by 25%.If all other factors remain constant, the supply curve would be estimated by:

a.Q_S= 2.00 + 4.0P + 25 = 23.00 + 4.0P

b.Q_S= 2.00 + [1.25 x 4.0 x P] =2.00 + 5.0P

c.Q_S= [2.00 x 1.25] + 4.0P = 2.50 + 4.0P

d.Q_S=.25 [2.00 + 4.0P] = -0.5 + 1.0P

e.Q_S= 1.25 [2.00 + 4.0P] = 2.50 + 5.0P

45.After the approval and using the adjusted supply curve,calculate the equilibrium price of chicken and enter the answer on the spreadsheet as dollars and cents, for example $1.13 or $3.21.

Price:

46.After the approval and using the adjusted supply curve,calculate the equilibrium quantity of chicken and enter the answer on the spreadsheet as a number with 2 decimals, for example 9.73 or 4.71.

Quantity:

47.Using the information in question 44, at the new equilibrium price and quantity, calculate the amount consumers spend on the product and the industry's revenue and enter the answer on the spreadsheet as dollars and cents in billions, for example $45.32 or $6.55.

Spending and Revenue:

48.Using the information in question 44, at the new equilibrium price and quantity, calculate the Consumers' Surplus and enter the answer on the spreadsheet as dollars and cents in billions, for example $2.51 or $16.73.

Consumers:

49.Using the information in question 44, at the new equilibrium price and quantity, calculate the Producers' Surplus and enter the answer on the spreadsheet as dollars and cents in billions, for example $5.14 or $11.31.

Producers:

50.At the adjusted equilibrium price and quantity, the Price Elasticity of Demand [using the "point price elasticity"] is:

a.-0.34

b.-0.81

c.-1.28

d.-1.32

e.-1.52

51.The last sentence of the article reads: '"No one benefits but industry," said Stan Painter, a USDA meat inspector for more than 30 years and chairman of a food inspectors' union'. The comment refers to the proposed increase in processing-line speed.Is the statement true [enter a T on the spreadsheet], or false [enter an F on the spreadsheet], or Indeterminate [enter an "I" on the spreadsheet]?Briefly explain your answer.