Green et al. (2005) estmate the supply and demand curves for Californa processod tomatoes. The supply function is: \[ \ln \left(Q_{s}\right)=0.200+0.550 \ln (p) \] whereQis the quantify of processing tomatoes in milions of tons per year andpis the price in dollars per ton. The demand function is: \[ \ln \left(Q_{d}\right)=2600-0.200 \ln (p)+0.150 \ln \left(p_{1}\right) . \] wherep1is the price of tornato paste (which is what processing tomatoes are used to produce) in dollars per ton. Supposept=$119Determine how the equilerium price and quantity of processing tomatees change if the price of tomato pasise tails by16%. If the price of tomato paste fals by18%, then the equaborium price will by 5 (Enter a numene response using a real number rounded to two decimal places) Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is:In(Q)=0.200+ 0.550 In (p),where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is:In(Q)= 2.600 -0.200 In(p) + 0.150 In(p).where p, is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton.Supposep, = $119.Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste falls by 18%.If the price of tomato paste falls by 18%, then the equilibrium price willby $ (Enter a numenc response using a real number rounded to two decimal places)

Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…

Answered: Green et al. (2005) estimate the supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Green et al. (2005) estmate the supply and demand curves for Californa processod tomatoes. The supply function is: \[ \ln \left(Q_{s}\right)=0.200+0.550 \ln (p) \] whereQis the quantify of processing tomatoes in milions of tons per year andpis the price in dollars per ton. The demand function is: \[ \ln \left(Q_{d}\right)=2600-0.200 \ln (p)+0.150 \ln \left(p_{1}\right) . \] wherep1is the price of tornato paste (which is what processing tomatoes are used to produce) in dollars per ton. Supposept=$119Determine how the equilerium price and quantity of processing tomatees change if the price of tomato pasise tails by16%. If the price of tomato paste fals by18%, then the equaborium price will by 5 (Enter a numene response using a real number rounded to two decimal places)

Green et al. (2005) estimate the supply and demand curves for California processed tomatoes. The supply function is:
In(Q)=0.200+ 0.550 In (p),
where Q is the quantity of processing tomatoes in millions of tons per year and p is the price in dollars per ton. The demand function is:
In(Q)= 2.600 -0.200 In(p) + 0.150 In(p).
where p, is the price of tomato paste (which is what processing tomatoes are used to produce) in dollars per ton.
Supposep, = $119.
Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste falls by 18%.
If the price of tomato paste falls by 18%, then the equilibrium price will
by $ (Enter a numenc response using a real number rounded to two decimal places)

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