The estimated demand function (Moschini and Meilke, 1992) for Canadian processed pork is Q= 161- 20p + 20p, + 3pc + 2Y, where Q is the quantity in million kilograms (kg) of pork per year, p is the dollar price per kg, p is the price of beef in Canadian dollars per kg, P. 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. Pe, and Y at their typical values during the period studied: Pp = 4.6, Pc =3.2, and Y = 11.5? Demand as a function of p is (enter your first response rounded to one decimal place and your second response as a whole number): Q=D-D.

Suppose the demand function for a product is given by the function: D(q) = -0.018q+50.4 Find the Consumer's Surplus corresponding to q = 1,550 units. (Do no rounding of results until the very end of your calculations. At that point, round to the nearest tenth, if necessary. It may help you to sketch the demand curve, which crosses the horizontal at q = 2,800.) dollars Answer:

Example 2: In fall of 2011, the National Christmas Tree Association decided to impose a fee/tax of $0.15 per tree sold.² They claimed the tax revenue raised would fund a new marketing campaign for Christmas tree growers in response to growing plastic tree imports. The proposal quickly drew controversy: some argued that the fee/tax would be passed along in higher prices to consumers, but the National Christmas Tree Association says no. How does the answer to this question depend on the assumption about the price elasticity of demand? a. Consider two graphs of the market for Christmas trees. The supply curve in each market is assumed to be the same. In the left graph, assume the price elasticity of demand is relatively inelastic and in the right graph, assume the price elasticity of demand is relatively elastic. Add labels on your diagram to identify the equilibrium price and quantity of trees before the tax. b. Now, suppose retailers are assessed a tax of amount for each tree sold.…

The coconut oil demand function (Bushena and Perloff, 1991) is Q=1,200-9.5p+16.2pp +0.2Y, where Q is the quantity of coconut oil demanded in thousands of metric tons per year, p is the price of coconut oil in cents per pound, pp is the price of palm oil in cents per pound, and Y is the income of consumers. Assume that p is initially 65 cents per pound, p, is 31 cents per pound, and Q is 1,275 thousand metric tons per year. Calculate the price elasticity of demand for coconut oil and the cross-price elasticity of demand (with respect to the price of palm oil). The price elasticity of demand is (Enter your response rounded to three decimal places and include a minus sign.) e=