Q2 [70 points] The estimated Canadian processed pork demand and supply functions are as the followings: Q1) =100-3p +31), + 5pc+2Y, QS=100+6p - 81),, where Q is the quantity in million kilograms (kg) of pork per year; 11 is the dollar price per kg, 11,, is the price of beef per kg, pc is the price of chicken per kg, 11,, is the price of hogs per kg, and Y is the average income in thousand dollars. Suppose that [21, = $8 .00 per kg, 1;, = $6 .00 per kg, ,0}, = $4 per kg, and T = $11. Answer the following questions. (Note that you need to show your calculations and explain your results to receive full credit!) e) If other things held constant, how would the income elasticity of demand change if the price of pork (p) were reduced to $22? Would the demand be more inelastic with respect to income? 1) What is the cross price elasticity with respect to the price of beef (19;) and of chicken (pf) at the market equilibrium quantity under the conditions stated above where p, = $4 .00 per kg, p, = $3 .00 per kg? Are they Substitutes or Complements? Explain. g) Calculate the elasticity of supply for the following prices by using the supply function above? P=$5, p=$15,and p: 3120 and p -> $00 pcrkg? 4 | A3_1.nb Note that Q, = 100 + 6p - 8 p}, where 1),, = $4