Question
The demand function for pork is Q400-100P+0.01INCOME, where Q is the tons of pork demanded in your city per week, P is the price
The demand function for pork is Q400-100P+0.01INCOME, where Q is the tons of pork demanded in your city per week, P is the price of a pound of pork, and INCOME is the average household income in the city. The supply function for pork is: Q-250+ 150P-30COST, where Q" is the tons of pork supplied in your city per week, P is the price of a pound of pork, and COST is the cost of pig food. Suppose INCOME is $50,000 and COST is $5 In this case, the equilibrium price of pork would be $and the equilibrium quantity of pork would be tons. (Round your answer for the price to two decimal places.) Suppose INCOME falls to $40,000 and COST does not change. The new equilibrium price of pork would be $ and the new equilibrium quantity of pork would be tons. (Round your answer for the price to two decimal places.) Suppose INCOME is $50,000 and COST rises to $10. The new equilibrium price of pork would be $, and the new equilibrium quantity of pork would be tons. (Round your answer for the price to two decimal places.) Suppose INCOME falls to $40,000 and COST rises to $10. The new equilibrium price of pork would be $and the new equilibrium quantity of pork would be tons.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started