Assume ako that the estimated supply function for beans is given as: e; = 19+ 20P, – 10W + 6T – 32P, – 20Pe + 5F where Q; is the quantity of beans supplied each month, P, is the price of beans, W is the price of abor, T'is an index measuring the level of technology, P, is the price of groundnut which is related in production, Pe is the expected future price beans, and Fis the number of firms in the industry. If W = 8, T=4,P,=4,P.=5 and F = 47, e. Determine the equation of the supply curve for beans f. Cakulate the equilibr ium price and quantity of beans 4 | Page g. Suppose government realizes that the price of beans does not favour economic growth and hence decrees that no one should buy beans below GH¢115 per bag. Identify this type of price control and briefly explain its effect on the market.

Assume ako that the estimated supply function for beans is given as: e; = 19+ 20P, – 10W + 6T – 32P, – 20Pe + 5F where Q; is the quantity of beans supplied each month, P, is the price of beans, W is the price of abor, T'is an index measuring the level of technology, P, is the price of groundnut which is related in production, Pe is the expected future price beans, and Fis the number of firms in the industry. If W = 8, T=4,P,=4,P.=5 and F = 47, e. Determine the equation of the supply curve for beans f. Cakulate the equilibr ium price and quantity of beans 4 | Page g. Suppose government realizes that the price of beans does not favour economic growth and hence decrees that no one should buy beans below GH¢115 per bag. Identify this type of price control and briefly explain its effect on the market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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