FARE 1400- Final Exam Guide - Comprehensive Notes for the exam ( 154 pages long!)

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 1400
• Professor: Alfons Weersink

Document Summary

Seminar #9 welfare & trade- teaching note and answers. Inelastic: perfectly inelastic, cross-price elasticity of demand, substitutes, complements, income-elasticity of demand, inferior good, normal necessity, normal luxury, change in demand (increase or decrease in demand) versus a change in the quantity demanded (movement along a demand curve) Suppose an individual"s demand for beef is given by the following equation: Qbeef 197. 49 19. 444 pbeef 5. 248 ppork 0. 0134 y where beefq is beef demand, beefp is the price of beef, porkp is the price of pork, and y is income. Ag econ jeopardy: suppose inflation drives up the price of all goods (including food) and income by the same percent. Suppose an individual"s coffee demand curve is given by the following equation: Q coffee where coffeeq is coffee demand, coffeep is real coffee price, teap is real tea price, , sugarp is real sugar price and y is real income.