You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows: Qd= 1,000 – 9.5Pc + 16.2Pg + 0.2Y where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50 Assume also that your estimated supply function for cowpea is as follows: Qs= -25 + 3.5Pc – 1.5f - 0.5Pg + 0.25R Where Qs is the quantity supplied of cowpea in bags, Pc and Pg are as defined above, Pf is the price of fertilizer per bag, R is the amount of rainfall (in inches). If Pf= GH¢ 10, R= 40 inches and Pg = GH¢31.00. Find the resulting supply function for cowpea and determine the equilibrium price and quantity. Assuming the government imposes a tax of GH¢10 on every bag of cowpea sold, determine the new equilibrium price and quantity. Explain the effect of the policy on the market. Sketch the demand and supply curves (c and d) for cowpea.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
You are the Economic Consultant for Zuku Farms Ghana Limited. Zuku produces cowpea in a community where producers are able to switch back and forth between cowpea and groundnut depending on market conditions. Consequently, you were tasked by the management of Zuku and you estimated the demand function for cowpea as follows:
Qd= 1,000 – 9.5Pc + 16.2Pg + 0.2Y
where is the quantity of cowpea demanded in bags per month, is the average price of cowpea in Ghana Cedis, is the average price of groundnut in Ghana Cedis, and Y is the income of consumers. Assuming is initially GH¢31.00 per bag, Y is GH¢1001.50
Assume also that your estimated supply function for cowpea is as follows:
Qs= -25 + 3.5Pc – 1.5f - 0.5Pg + 0.25R
Where Qs is the quantity supplied of cowpea in bags, Pc and Pg are as defined above, Pf is the price of fertilizer per bag, R is the amount of rainfall (in inches).
If Pf= GH¢ 10, R= 40 inches and Pg = GH¢31.00.
- Find the resulting supply function for cowpea and determine the equilibrium price and quantity.
- Assuming the government imposes a tax of GH¢10 on every bag of cowpea sold, determine the new equilibrium price and quantity. Explain the effect of the policy on the market.
Sketch the demand and supply curves (c and d) for cowpea.
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