Q2 At the price of $5.50 per tonne, the annual Canada-wide supply and demand for corn are 2.4 and 2.9 kilotonnes, respectively. When the price rises to $7.30, the supply increases to 2.8 kilotonnes while the demand decreases to 2.4 kilotonnes. (Note that the units for quantities will be in kilotonnes DO NOT convert them to tonnes.) (Q2 a) Assuming that the price (per tpnne) is a linear function of the quantity (in q kilotonnes) supplied, determine the supply function p f(a). State clearly the appropriate model to use and show all your work for finding the function. (Q2 b) Assuming that the price (per tpnne) is a linear function of the quantity (in q f(q). State clearly the appropriate kilotonnes) demanded, determine the demand function p = model to use and show all your work for finding the function. ( Q2 c) Find the equilibrium point and the market clearing price. Show all your work. (Q2 d) Sketch the supply and demand functions on the same graph clearly indicating the equilibrium value and the market clearing price.

Q2 At the price of $5.50 per tonne, the annual Canada-wide supply and demand for corn are 2.4 and 2.9 kilotonnes, respectively. When the price rises to $7.30, the supply increases to 2.8 kilotonnes while the demand decreases to 2.4 kilotonnes. (Note that the units for quantities will be in kilotonnes DO NOT convert them to tonnes.) (Q2 a) Assuming that the price (per tpnne) is a linear function of the quantity (in q kilotonnes) supplied, determine the supply function p f(a). State clearly the appropriate model to use and show all your work for finding the function. (Q2 b) Assuming that the price (per tpnne) is a linear function of the quantity (in q f(q). State clearly the appropriate kilotonnes) demanded, determine the demand function p = model to use and show all your work for finding the function. ( Q2 c) Find the equilibrium point and the market clearing price. Show all your work. (Q2 d) Sketch the supply and demand functions on the same graph clearly indicating the equilibrium value and the market clearing price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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