During the 1950s the wholesale price for chicken for a country fell from 25c per pound to 14c per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the price.(a) Construct a linear demand function q(p), where p is in cents (e.g., use 14c, not $0.14).Then, find the revenue function. R(p).R(p) =(b) What wholesale price for chicken would have maximized revenues for poultry farmers?¢ per poundSecond derivative test:Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function.R"(p)=

Demand function seeks to explain how the quantity demanded by buyers is related to the price of a…

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

During the 1950s the wholesale price for chicken for a country fell from 25e per pound to 14e per pound, while per capita chicken consumption rose from 21.5 pounds per year to 27 pounds per year. Assume that the demand for chicken depended linearly on the pric (a) Construct a linear demand function q(p), where p is in cents (e.g., use 14e, not $0.14). Then, find the revenue function. R(p). R(P) = (b) What wholesale price for chicken would have maximized revenues for poultry farmers? e per pound Second derivative test: Your answer above is a critical point for the revenue function. To show it is a maximum, calculate the second derivative of the revenue function. R"(p)=

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. As an agriculture analyst for the Union of American Fruit Producers (UAFP), you are in charge of monitoring the US peach market. The market can be described by the following "calibrated" demand and supply functions: Qd = 1600-8P +8Pn Qs = 34P-102 (1) (2) where P is the price of a crate of peaches, Pn is the price for a crate of nectarines, and Qd and Q, are the quantity demanded and the quantity supplied of peaches (measured in thousands of crates). (a) Find the inverse demand and inverse supply equations. Hypothetically, how many crates of peaches should UAFP expect consumers to buy if peaches are given away free of charge in a marketing campaign? If the price of a crate of peaches was to increase, at what price would buyers no longer be willing to buy any peaches? (Hint: your previous answers will be expressions that depend on the value of P) If the price of peaches was to decrease, at what price would the quantity of peaches supplied fall to zero? (b) Assuming that P₁ = $55,…
The coconut oil demand function (Bushena and Perloff, 1991) is Q = 1,200 – 9.5p + 16.2p, + 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, p, 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 23 cents per pound, and Q is 1,300 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.)
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The demand for product X depends on the price of product X as well as the average household income (Y) according to the following relationship Qdx=800-5P+0.001Y The supply of product X is positively related to own price of product X and negatively dependent upon W, the price of some input. This relationship is expressed as: Qsx= 100+ 45 P-4 W Given that Y = 50,000 and W= 4, what is the 1. Equilibrium price? Number 2. Equilibrium quantity? Number Suppose that income increases to 60,000 and W remains constant. What is the new: 3. Equilibrium price? Number 4. Equilibrium quantity? Number Assuming that income remains constant at 60,000 and W increases to 9, what is the new: 5: Equilibrium price? Number 6. Equilibrium quantity? Number
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I need some help Consider the equations and graphs for the demand and supply functions given below. Then answer the following questions. P=5Q^2+72Q P=-Q^2-3Q+20.23 State the domain for these curves for the analysis to be valid. (Answer to 2 decimal places)
The demand function for apples is the following. Qn = 10 – Pn + 0.2Y +0.5 Pc – 2Ps + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations) Q. How much will the demanded quantity change if the price of apples increases to 1.5? a. It will decrease by 0.4 million kilos. b. It will decrease by 0.5 million kilos. c. It will increase by 2 million kilos. d. It will increase by 0.5 million kilos. e. All the other answers are wrong.
The demand function for a certain product is determined by the fact that the product of the price and the quantity demanded equals 8000. The product currently sells for $2.20 per unit. Suppose manufacturing costs are increasing over time at a rate of 18% and the company plans to increase the price p at this rate as well. Find the rate of change of demand over time. Find the demand function represented in this problem where p is the price of the product and q is the quantity demanded for the product. (Type an equation.)
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