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AGEC 330 – Suppose that the following equations

by | Nov 30, 2023 | Posted Questions

Suppose that the following equations represents annual house hold demand for broilers.

Q= 160-25P1+10P2+0.001I

Where Q= annual pounds of broilers

P1=price/lb of broilers

P2= price/lb of beef

I = annual income

Calculate the direct and cross-price elasticities for broilers when the prices of broilers and beef are 0.8$ and 3$/lb respectively, and annual income is 30,000$/yr.

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