You have collected the data below from 1971 to 2010 on quantity demanded for por

Question

You have collected the data below from 1971 to 2010 on quantity demanded for pork, pork price, beef price, poultry price, and income. The last row contains the average quantities for each variable. Given the data I requested that you estimate a demand function for pork. Pork - Quantity Demanded (million lbs /year) Pork Price ($/cwt) Beef Price (S/cwt) Poultry Price (S/cwt) Income ($) 1971 1400 168 250 75 3001 1972 1302 175 198 79 2986 | | | | | | 2010 1150 171 213 76 3083 Average 1325 172 226 78 3069 How would you go about doing this? You estimated the demand function for pork as: Q d pork = 765 - 6.50P pork + 2.81P beef + 3.52P poultry + 0.251 Calculate the own price elasticity of demand for pork (indicate whether elastic, inelastic, or unit elastic), cross price elasticity's of demand for pork (indicate which products are substitutes and complements), and income elasticity of demand for pork (indicate whether pork is a normal good or inferior good). Hint: you can use the arc or point method to estimate the elasticity's.. .but I suggest the point method. If the price for pork in the United States would increase by 10%, by how much would the quantity demanded for pork change? Make sure to specify whether quantity demanded will increase or decrease. If incomes in the United States were to increase by 5%, by how much would the quantity demanded for pork change? Make sure to specify whether quantity demanded will increase or decrease. Simply the demand function for pork, where quantity demanded of pork is a function of price for pork. (Hint: plug in the average values for the price of beef, price of poultry, and income, and add to the 765). Write the simplified demand function. If the supply function for pork is Q s pork = 7.60P pork what would be the equilibrium price and quantity. Estimate the consumer and producer surplus.

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plz upload the larger image....it is unable to see the pic....Thanks

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