Retail demand for eggs was given as in a certain market was given as P, = 23-0.04Q whereas the farm gate demand as P, = 9.8 -0.11Q and farm gate supply P, = 0.38Q. (a) (b) (c) (d) (e) compute the marketing margin If the aggregator charges K12.60 and the wholesaler K15.00, determine the price margins for the aggregator, wholesaler and retailer What costs are attributed to these price margins? compare the elasticity of demand at farm-gate and retail nodes what factors do you think are responsible for the difference in the elasticity of demand between the two nodes in (d)?
Retail demand for eggs was given as in a certain market was given as P, = 23-0.04Q whereas the farm gate demand as P, = 9.8 -0.11Q and farm gate supply P, = 0.38Q. (a) (b) (c) (d) (e) compute the marketing margin If the aggregator charges K12.60 and the wholesaler K15.00, determine the price margins for the aggregator, wholesaler and retailer What costs are attributed to these price margins? compare the elasticity of demand at farm-gate and retail nodes what factors do you think are responsible for the difference in the elasticity of demand between the two nodes in (d)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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