Q3 Suppose that an estimated monthly demand and supply functions forapples in the U.S. are given by:Qd = 200 - 40 p + 20 pq + 0.015YQs = 85 + 35 p - 20 p fwhereQd is the quantity of apples demanded in tons per month;p is the price of apples in US dollars per kilogram;pq is the price of quince (a substitute good) in dollars per kilogram;Y is the income of consumers per month in thousand dollar;Qs is the quantity of apples supplied in tons per year;p f is the price of fertilizer ( an input) in dollars.And supposeQs is the quantity of apples supplied in tons per year;p f is the price of fertilizer ( an input) in dollars.And suppose further thatpq is $2 per kilogram;Y is 4000 per month;p f is $0 .50 per kilogram.Answer the following questions.
Q3 Suppose that an estimated monthly
apples in the U.S. are given by:
Qd = 200 - 40 p + 20 pq + 0.015Y
Qs = 85 + 35 p - 20 p f
where
Qd is the quantity of apples demanded in tons per month;
p is the
pq is the price of quince (a substitute good) in dollars per kilogram;
Y is the income of consumers per month in thousand dollar;
Qs is the quantity of apples supplied in tons per year;
p f is the price of fertilizer ( an input) in dollars.
And suppose
Qs is the quantity of apples supplied in tons per year;
p f is the price of fertilizer ( an input) in dollars.
And suppose further that
pq is $2 per kilogram;
Y is 4000 per month;
p f is $0 .50 per kilogram.
Answer the following questions.
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