Consider the demand function for processed pork in Canada, ad 358.00 12p + 20pb

Question

Consider the demand function for processed pork in Canada, ad 358.00 12p + 20pb 3pc +0.002Y The supply function for processed pork in Canada is s-385.00+47p-60ph Po is the price of beef $4 per kg Pc is the price of chicken $3 per kg Y is the income of consumers$12,500 Ph is the price of a hog $1.50 per kg p is the price of pork Q is the quantity of pork demanded (measured in millions of kg per year) Solve for the equilibrium price and quantity for pork. The equilibrium price of pork is S decimal places.) and the equilibrium quantity of pork is million kg per year. (Enter numeric responsos using real numbers rounded up to tweo

Explanation / Answer

Qd = 358 - 12p + 20(4) + 3(3) + 0.002(12500) = 358 - 12p + 80 + 9 + 25

Qd = 472 - 12p

Qs = 385 + 47p - 60(1.50) = 385 + 47p - 90

Qs = 295 + 47p

Equilibrium Qd = Qs

472 - 12p = 295 + 47p

472 - 295 = 47p + 12p

177 = 59p

p = $ 3

Q = 295 + 47(3) = 295 + 141

Q = 436 million kg per year

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