This is the market for steer. Steer are processed into 1 hide and 1 beef. Initial Demand for hides: Q = 70 -P Initial Demand for beef: Q = 100-0.5P Market supply for steer: Q = -35 + 0.5P New Scenario: The demand for beef rises. People are now willing to pay 80% more than what they used to pay for beef. Hints: you must correctly calculate the new equation for hides to get this question correct. If you feel stuck, try some prices with the original demand for beef and your new demand for beef. Are people willing to pay 1.8 tim as much for each quantity of beef? If so, you have correctly calculated your new Deef Curve. • For example, with the initial demand, people are willing to pay $160 for 20 beef and $100 for 50 beef. the new scenario, the new demand curve needs to show that people are now willing to pay $288 for 20 beef and $180 for 50 beef. a) Calculate new market Q and P for steer b) Calculate new market Q and P for hides c) Calculate new market O and P for beef

This is the market for steer. Steer are processed into 1 hide and 1 beef. Initial Demand for hides: Q = 70 -P Initial Demand for beef: Q = 100-0.5P Market supply for steer: Q = -35 + 0.5P New Scenario: The demand for beef rises. People are now willing to pay 80% more than what they used to pay for beef. Hints: you must correctly calculate the new equation for hides to get this question correct. If you feel stuck, try some prices with the original demand for beef and your new demand for beef. Are people willing to pay 1.8 tim as much for each quantity of beef? If so, you have correctly calculated your new Deef Curve. • For example, with the initial demand, people are willing to pay $160 for 20 beef and $100 for 50 beef. the new scenario, the new demand curve needs to show that people are now willing to pay $288 for 20 beef and $180 for 50 beef. a) Calculate new market Q and P for steer b) Calculate new market Q and P for hides c) Calculate new market O and P for beef

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

This is the market for steer.
Steer are processed into 1 hide and 1 beef.
Initial Demand for hides: Q = 70 -P
Initial Demand for beef: Q = 100- 0.5P
Market supply for steer: Q =-35 + 0.5P
New Scenario:
The demand for beef rises. People are now willing to pay 80% more than what they used to pay for beef.
Hints: you must correctly calculate the new equation for hides to get this question correct. If you feel stuck, try
some prices with the original demand for beef and your new demand for beef. Are people willing to pay 1.8 tim
as much for each quantity of beef? If so, you have correctly calculated your new Deef Curve.
• For example, with the initial demand, people are willing to pay $160 for 20 beef and $100 for 50 beef.
the new scenario, the new demand curve needs to show that people are now willing to pay $288 for 20
beef and $180 for 50 beef.
a) Calculate new market Q and P for steer
b) Calculate new market Q and P for hides
c) Calculate new market O and P for beef

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