Given the following short-run demand and supply equations, find the long-run equilibrium price and quantity (20...
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Given the following short-run demand and supply equations, find the long-run equilibrium price and quantity (20 points) I Q=44.61 +(4.41P12)-(23.41Soy+12) + (0.41Q-12) Pt=46.83-(0.071Q) + (0.43H) + (0.93C) + (0.031Y)-(4.17 DQ1)+(8.74DQ2) - (9.52 DQ3;) + (0.002Q-12) Where: Q- Quantity of Beef (current) P₁ = Price of Beef (current) Soys 12 = Price of soymeal last year-value is $6.49 per pound H-Price of Hogs (current) - value is $207 per cwt G=Price of Chicken (current)-value is $160 per cwt X Disposable US Income (current)-value is $14.25 trillion DQ1, Dummy variable for autumn-value is 0.25 DQ2 Dummy variable for winter-value is 0.25 DQ3, Dummy variable for spring-value is 0.25 Given the following short-run demand and supply equations, find the long-run equilibrium price and quantity (20 points) I Q=44.61 +(4.41P12)-(23.41Soy+12) + (0.41Q-12) Pt=46.83-(0.071Q) + (0.43H) + (0.93C) + (0.031Y)-(4.17 DQ1)+(8.74DQ2) - (9.52 DQ3;) + (0.002Q-12) Where: Q- Quantity of Beef (current) P₁ = Price of Beef (current) Soys 12 = Price of soymeal last year-value is $6.49 per pound H-Price of Hogs (current) - value is $207 per cwt G=Price of Chicken (current)-value is $160 per cwt X Disposable US Income (current)-value is $14.25 trillion DQ1, Dummy variable for autumn-value is 0.25 DQ2 Dummy variable for winter-value is 0.25 DQ3, Dummy variable for spring-value is 0.25
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To find the longrun equilibrium price and quantity we need to set the shortrun demand equation equal ... View the full answer
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Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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