Given the inverse demand function for pork (Question 1.1) is p = 14.30 - 0.05Q, how much would the price have to rise for consumers to want to buy 2 million fewer kg of pork per year?

Question 1.1

The estimated demand function (Moschini and Meilke, 1992) for Canadian processed pork is Q = 171 - 20p + 20p_b + 3p_c + 2Y, where Q is the quantity in million kilograms (kg) of pork per year, p is the dollar price per kg (all prices cited are in Canadian dollars), p_b is the price of beef per kg, pc is the price of chicken in dollars per kg, and Y is average income in thousands of dollars. What is the demand function if we hold p_b, p_c, and Y at their typical values during the period studied: p_b = 4, p_c = 3 1/3 , and Y = 12.5?