Question: The demand function for pork is: Q = 300 - 100P + 0.05INCOME, where Q is the tons of pork demanded in your city per

The demand function for pork is: Q = 300 - 100P + 0.05INCOME, where Q" is the tons of pork demanded in your city per week, P is the price of a pound of pork, and INCOME is the average household income in the city. The supply function for pork is: QS = 250+ 150P - 20COST, where Q' is the tons of pork supplied in your city per week, P is the price of a pound of pork, and COST is the cost of pig food. Suppose INCOME is $50,000 and COST is $5. In this case, the equilibrium price of pork would be $ and the equilibrium quantity of pork would be tons. (Round your answer for the price to two decimal places.) Suppose INCOME falls to $40,000 and COST does not change. The new equilibrium price of pork would be $ , and the new equilibrium quantity of pork would be tons. (Round your answer for the price to two decimal places.) Suppose INCOME is $50,000 and COST rises to $10. The new equilibrium price of pork would be $ , and the new equilibrium quantity of pork would be |tons. (Round your answer for the price to two decimal places.) Suppose INCOME falls to $40,000 and COST rises to $10. The new equilibrium price of pork would be $ , and the new equilibrium quantity of pork would be |tons. (Round your answer for the price to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
