Supply and Demand Equations

PhilMickelson

Any help with this question would be swell:)

Given the following set of simultaneous equations for 2 related markets, beef(B) and pork (P), find the equilibrium conditions for each market.
1)
QDB = 82-3PB + PP
QSP = -5 + 15PB

2)
QDP = 92+2PB - 4PP
QSP = -6 +32PB

Is it even possible to answer this question?????

PhilMickelson

BUMP

Butterz

dunno

1st lesson, 1st minute, what does supply equal?

PhilMickelson

I know it equals demand.:rolleyes:

But theres two quantity supplies of pork.

Just wondering if one of them might be a mistake?

nesf

PhilMickelson wrote: »

I know it equals demand.:rolleyes:

But theres two quantity supplies of pork.

Just wondering if one of them might be a mistake?

At a guess the bottom line should probably read: "QSB = -6 +32PP".

Joey the lips

Yes all equations can be asnwered and like any other science economics treats life as a perfect market and works out whats wrong rather than working out whats wrong and trying to make it right.

If I apply this her. Your equation does not give the meaning of the variables and it is 5 years since I done these equations at least

PS: Can you put up a sample question with the answer to bring it all back - Thanks

Flamed Diving

Are 1) and 2) completely seperate or what?

If not, how can you have two different supply schedules for Qsp = f(Pb)?


EDIT: I guess what Nesf said must be right. The numbers are so bloody ugly, as well. Nothing divides evenly...

regob

PhilMickelson wrote: »

Any help with this question would be swell:)

Given the following set of simultaneous equations for 2 related markets, beef(B) and pork (P), find the equilibrium conditions for each market.
1)
QDB = 82-3PB + PP
QSP = -5 + 15PB

2)
QDP = 92+2PB - 4PP
QSP = -6 +32PB

Is it even possible to answer this question?????

its possible, just ugly

PhilMickelson

Joey the lips wrote: »

PS: Can you put up a sample question with the answer to bring it all back - Thanks

Don't have any. Thats the problem. I dont know if the equations are meant to be separate or what. But say nesf is right.....what do ye reckon the solution would be?

regob wrote: »

its possible

Prove it:P

PhilMickelson

Flamed Diving wrote: »

Are 1) and 2) completely seperate or what?

If not, how can you have two different supply schedules for Qsp = f(Pb)?


EDIT: I guess what Nesf said must be right. The numbers are so bloody ugly, as well. Nothing divides evenly...

If they are separate is it possible to draw any conclusion from them?

Flamed Diving

PhilMickelson wrote: »

If they are separate is it possible to draw any conclusion from them?

Yeah, as pointed out, the bottom market has a misprint. You simply set them equal to each other and re-arrange and simplify. It's quite a messy one, though, be careful with your working out.

I haven't had a chance to work them out, I just did a few scribbles. You will be left with a lot of fractions and a spare 'P' hanging around.

nesf

PhilMickelson wrote: »

Don't have any. Thats the problem. I dont know if the equations are meant to be separate or what. But say nesf is right.....what do ye reckon the solution would be?

Set Q=S for each product and set both equal to 0 and you'll get a pair of simultaneous equations in PP and PB. Then it's just a matter of solving for PP and PB.

PhilMickelson

nesf wrote: »

Set Q=S for each product and set both equal to 0 and you'll get a pair of simultaneous equations in PP and PB. Then it's just a matter of solving for PP and PB.

That would be if 1) and 2) werent separate right?


Because if it is QSB = -6 +32PP instead of QSP = -6 +32PB

I get Price of Pork= 2.18 and Price of Beef = 6.79

Any other suggestions?
Anyone think the equations should be separate or saying "it should be QSB = -6 +32PP instead of QSP = -6 +32PB" is a pretty big assumption?

Because to me the equations are weird anyway because quantity supplied normally depends on the price of the good itself(among other things) so dunno why the equations are the way they are.

All opinions welcome.
Thanks so far:D

nesf

PhilMickelson wrote: »

Because to me the equations are weird anyway because quantity supplied normally depends on the price of the good itself(among other things) so dunno why the equations are the way they are.

They should, ignore what I originally said. QSP should be in terms of PP and QSB in terms of PP.

Set it up like this:

QDB=82-3PB+PP
QSB=-5+15PB

QDP=92+2PB-4PP
QSP=-6+32PP.


I won't give you the answer but PP and PB should be whole numbers if you solve it correctly.

PhilMickelson

Cheers.
Pb=5
Pp=3

If only there was no mistake in the first place:rolleyes:

I seriously spend half my time puzzling over questions that i later find out were just mistakes.
My thoughts being, "this must just be a really difficult question....ill solve it and itll be great"
then when my attempts fail try boards.ie

From now on....if it looks wrong...its wrong!

Flamed Diving

Flamed Diving wrote: »

Yeah, as pointed out, the bottom market has a misprint. You simply set them equal to each other and re-arrange and simplify. It's quite a messy one, though, be careful with your working out.

I haven't had a chance to work them out, I just did a few scribbles. You will be left with a lot of fractions and a spare 'P' hanging around.

Ignore this man.

:P