Question

1) Suppose Firm A has a supply curve of Qa = -2 + p and Firm B has a supply curve of Qb = 0.5p. How much is the total supply at a price of $5?

2) Green et al.​ (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is : ln(Q) = 0.400 + 0.450 ln(p), where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is ln(Q) = 2.600 - 0.200 ln (p) + 0.150ln (pt) where p(t)

is the price of tomato paste​ (which is what processing tomatoes are used to​ produce) in dollars per ton.

How does the quantity of processing tomatoes supplied vary with the​ price?  It might be easier for you to exponentiate both sides of the equation first. Exponentiating both sides of the supply​ equation, Q= e ^ (0.400 + 0.450 ln(p))

The effect of a change in price on quantity supplied is : dQ/ dp = ____?

3) Green et al.​ (2005) estimate the supply and demand curves for California processed tomatoes. The supply function​ is: ​ln(Qs​) ​= 0.2​ + 0.55​ ln(p), where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function​ is: ​ln(Qd​)​=2.6−0.2 ​ln(p) + 0.15 ln (pt), where pt is the price of tomato paste​ (which is what processing tomatoes are used to​ produce) in dollars per ton. Suppose Pt = 95. What is the demand function for processing​ tomatoes, where the quantity is solely a function of the price of processing​ tomatoes?  

ln(Q) = ___ - ____ ln(p)?

4) Consider the demand function for processed pork in​ Canada, Qd = 716 - 36p + 20pb + 3pc + 0.002Y. The supply function for processed pork in Canada is : Qs = 339 + 47p - 60ph.

p is the price of pork

Q is the quantity of pork demanded

pb = is the price of beef = $4 per kg

pc is the priceo f chicken = $3 per kg

Y is the income of consumers = $12,500

ph is the price of a hog = 1.50 per kg

Solve for the equilibrium price and quantity for work.

5)

Due to a recession that lowered​ incomes, the 2008 market prices for​ last-minute rentals of U.S. beachfront properties were lower than usual. Suppose that the inverse demand function for renting a beachfront property in Ocean​ City, New​ Jersey, during the first week of August is

p = 1500 - Q + (Y/40),

where Y is the median annual income of the people involved in this​ market, Q is​ quantity, and p is the rental price.The inverse supply function is p = (Q/4) + (Y/50) Derive the equilibrium​ price, p*, and the​ quantity, Q*, in terms of Y.

The equilibrium​ quantity, Q*, is

Answer 1