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 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)-2600-0.200 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. Suppose p, $119. Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste talls by 10%. the price of tomato paste falls by 18%, then the equilibrium price will by $ (Enter a numeric 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 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)-2600-0.200 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. Suppose p, $119. Determine how the equilibrium price and quantity of processing tomatoes change if the price of tomato paste talls by 10%. the price of tomato paste falls by 18%, then the equilibrium price will by $ (Enter a numeric response using a real number rounded to two decimal places)
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)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bda9b14-43b2-4e4d-a7f7-40428dd1132c%2F530149ee-b023-4519-aa5e-533d0e8307e4%2Fqm5ic98_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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