Given, the Retail demand and the Farm supply: Retail demand:Q =16−Pr Farm Supply:Q =2+0.5Pf Marketing cost per unit =$5 Quantity Retail Price Pr=16−QPr=16-Q Marketing cost Farm-level DD price Pf=(Q−2)/0.5Pf=(Q-2)/0.5 2 14 10 0 4 12 20 4 6 10 30 8 8 8 40 12 10 6 50 16 What is the equilibrium quantity? What is the farm price at this quantity? What is the retail price at this quantity?

Given, the Retail demand and the Farm supply: Retail demand:Q =16−Pr Farm Supply:Q =2+0.5Pf Marketing cost per unit =$5 Quantity Retail Price Pr=16−QPr=16-Q Marketing cost Farm-level DD price Pf=(Q−2)/0.5Pf=(Q-2)/0.5 2 14 10 0 4 12 20 4 6 10 30 8 8 8 40 12 10 6 50 16 What is the equilibrium quantity? What is the farm price at this quantity? What is the retail price at this quantity?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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