1. The demand function is Q = 100 - 8p, and the supply function is Q = 30 + 6p. Determine the equilibrium price and quantity. 2a. Calculate to three decimal places the price and cross - price elasticities of demand for coconut oil. The coconut oil demand function is Q = 1200 - 12 p + 16.2.pp + 0.25-Y, 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. You will need to calculate the income of consumers first. Assume that p is initially 45¢ per pound, pp is 31¢ per pound, and Q is 1375 thousand metric tons per year. The coefficients for p and -pound not $ per pound 2h pn are consistent with prices expressed in

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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1. The demand function is Q = 100 - 8p, and the supply function is Q
= 30 + 6p. Determine the equilibrium price and quantity. 2a. Calculate to
three decimal places the price and cross - price elasticities of demand for coconut
oil. The coconut oil demand function is Q = 1200 - 12∙p + 16.2.pp +0.25-Y,
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. You will need to calculate the
income of consumers first. Assume that p is initially 45¢ per pound, pp is 31¢ per
pound, and Q is 1375 thousand metric tons per year. The coefficients for p and
pp are consistent with prices expressed in & per pound, not $ per pound. 2b.
Transcribed Image Text:1. The demand function is Q = 100 - 8p, and the supply function is Q = 30 + 6p. Determine the equilibrium price and quantity. 2a. Calculate to three decimal places the price and cross - price elasticities of demand for coconut oil. The coconut oil demand function is Q = 1200 - 12∙p + 16.2.pp +0.25-Y, 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. You will need to calculate the income of consumers first. Assume that p is initially 45¢ per pound, pp is 31¢ per pound, and Q is 1375 thousand metric tons per year. The coefficients for p and pp are consistent with prices expressed in & per pound, not $ per pound. 2b.
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