3.4 The estimated Canadian processed pork demand function (Moschini and Meilke, 1992) is Q =

171 - 20p + 20pb + 3pc + 2Y (see Exercise 1.1), and the supply function is Q = 178 + 40p - 60ph

(see Exercise 2.1). Solve for the equilibrium price and quantity in terms of the price of hogs, ph; the price of beef, pb; the price of chicken, pc; and income, Y.

If ph = 1.5 (dollars per kg), pb = 4 (dollars per kg), pc = 31 3 (dollars per kg), and Y = 12.5 (thousands of dollars), what are the equilibrium price and quantity? M