2009Problem_Set_6 - AEM 4150 Price Analysis Fall Semester 2009 Homework Assignment 6 This assignment is due at the beginning of class on Tuesday

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AEM 4150 Price Analysis Fall Semester 2009 Homework Assignment 6 This assignment is due at the beginning of class on Tuesday, October 27, 2009. Question 1 The following are supply and demand curves for potatoes at the farm and retail level: (1) Retail Demand ( D r ) P r = 50 - 0.75Q (2) Marketing Margin (M) M = 32 - 0.48Q (3) Farm Supply (S f ) P f = -20 + 1.43Q In the above, P r is the U.S. average retail price per sack, Q is total quantity of sacks marketed (in millions of sacks), P f is the average price per sack received by potato growers, M reflects cost of shipping, wholesale, and retail operations. The supply equation predicts the quantity produced for a given P f after producers have had time to adjust production levels to that price. Answer the following ( please show your work and circle your answers where appropriate ). (a) (1 point) Graph the retail demand, and farm supply curves. Label all curves and axes.
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This note was uploaded on 08/30/2010 for the course AEM 4150 at Cornell University (Engineering School).

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2009Problem_Set_6 - AEM 4150 Price Analysis Fall Semester 2009 Homework Assignment 6 This assignment is due at the beginning of class on Tuesday

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