Graph the function make sure to label the axes, Use the function to estimate the cost of a pound of pork bellies if 50,000 pounds of pork bellies are produced in a given year

Question

1. The price of commodities, like pork bellies, is determined by supply and demand. Thus, the price of pork bellies is a function of the number of pounds of pork bellies produced. The price of a pound of pork bellies can be estimated by the function f(Q) = - 0.000003Q + 0.83, 10,000 ≤ Q ≤ 80,000 where f(Q) is the price of a pound of pork bellies and Q is the annual number of pounds of pork bellies produced.
2. a) Graph the function. Make sure to label the axes.
3. b) Use the function to estimate the cost of a pound of pork bellies if 50,000 pounds of pork bellies are produced in a given year.

Answer 1

P f(Q) = -.000003Q + .83 = 3 x 10^-6

P = -.000003(50,000) + .83 = 3 x 10^-6 x 5 x 10^5 + .83 = 15 x 10^-1

P =-.3x5 + .83 = -1.5+.83 = 2.33 = $2.33? = cost per pork belly.

graph with Price on the vertical, the y axis and Q on the horizontal, the x axis

this f(Q) equation looks like the demand curve. To really know the equilibrium price, you also need a supply curve equation. Then set them equal to solve for equilibrium price.