Retail demand for eggs was given as in a certain market was given as P, = 23-0.04Q whereas the farm gate demand as P, = 9.8 -0.11Q and farm gate supply P, = 0.38Q. (a) (b) (c) (d) (e) compute the marketing margin If the aggregator charges K12.60 and the wholesaler K15.00, determine the price margins for the aggregator, wholesaler and retailer What costs are attributed to these price margins? compare the elasticity of demand at farm-gate and retail nodes what factors do you think are responsible for the difference in the elasticity of demand between the two nodes in (d)?

Retail demand for eggs was given as in a certain market was given as P, = 23-0.04Q whereas the farm gate demand as P, = 9.8 -0.11Q and farm gate supply P, = 0.38Q. (a) (b) (c) (d) (e) compute the marketing margin If the aggregator charges K12.60 and the wholesaler K15.00, determine the price margins for the aggregator, wholesaler and retailer What costs are attributed to these price margins? compare the elasticity of demand at farm-gate and retail nodes what factors do you think are responsible for the difference in the elasticity of demand between the two nodes in (d)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Retail demand for eggs was given as in a certain market was given as P, = 23-0.04Q whereas the
farm gate demand as P, = 9.8 -0.11Q and farm gate supply P, = 0.38Q.
(a)
(b)
(c)
(d)
(e)
compute the marketing margin
If the aggregator charges K12.60 and the wholesaler K15.00, determine the price margins
for the aggregator, wholesaler and retailer
What costs are attributed to these price margins?
compare the elasticity of demand at farm-gate and retail nodes
what factors do you think are responsible for the difference in the elasticity of demand
between the two nodes in (d)?

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