Question: Q2: (a) Consider following model Q = a, +a,P+2, Y +, (demand) Q = B + B,P+B R + B.7 +, (sup phy) Here Q

Q2: (a) Consider following model Q = a, +a,P+2, Y

Q2: (a) Consider following model Q = a, +a,P+2, Y +, (demand) Q = B + B,P+B R + B.7 +, (sup phy) Here Q = food consumption per head, P = ratio of food price to general consumer prices, Y. = consumer income in constant prices, R. - ratio of preceding year's prices received by farmers for products to general consumer prices and 7 = time in years. The variables Q and P are endogenous, while Y, R and 7 are predetermined i. State whether demand and supply equations unidentified exactly identified or over identified using rank condition and order condition How demand equation be estimated using 2SLS method

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