Drama, Film, and Mass Communication homework help

Problem 7 Heavy rain in Midwest delayed the harvesting of wheat in June, and wheat prices rose sharply to a six-month high. Wheat futures for July 2015 delivery rose approximately 6% to $6.1475 a bushel, the highest settlement price since last December.1) Explain the increase in wheat prices with demand and supply curves. How did the rain affect the supply of wheat? Show the impact in the graph. (4 points)2) Assuming demand curve stays fixed, how do the new equilibrium price and quantity compare with the old equilibrium price and quantity? (2 points)Problem 8 (Demand Elasticities):Given the demand function for organic processed porkQ(D)= 190 – 20P + 20Pbeef+ 2Y + 15Zwhere average Pbeef = $4.00/kg, average Y=$12.5 thousands, and Z = 1,(a) What is the own price elasticity at the market equilibrium you have solved in Problem3 (2)? What is the economic meaning of the value of the own price elasticity? Suppose during one week, the grocery store sets a promotion price for pork that is slightly lower than the equilibrium price, will the revenue from pork increase or decrease during the promotion week? (6 points)(b) What is the cross price elasticity between pork and beef at the average price of beef and the equilibrium quantity solved in Problem3 (2)? What is the economic meaning of the value of the cross price elasticity? (4 points) ?Question 3 In the back, you don’t have to do it. Thank you?(c) What is the income elasticity at the average per capita income of Y=$12.5 thousands, and the equilibrium quantity solved in Problem3 (2)? What is the economic meaning of the value of the income elasticity? (4 points)Problem 9 (Pricing of Luxury Goods) Bonus Question (8 points):For years luxury goods are priced between 25% and 40% higher in China than in Europe excluding tax. However as more Chinese customer travel overseas and have access to internet, Chinese consumers are shifting their purchases of luxury goods from within China to overseas to take advantage of the more affordable prices. As a result, luxury sales within China fell 11% in 2014, but similar purchases made by Chinese consumers overseas grew by 9%. You are hired as an Economist by the world’s largest luxury company, LVMH, to help determine its pricing strategy in China to recover revenue. What would you recommend? (See Optional Reading #3 – Luxury Pricing)(Hint: utilize the concept of elasticity and market’s geographical boundary.)Problem 3 (Impact of Shift in Demand on Market Equilibrium):After revisiting market trend of demand for processed pork, you have realized that consumer taste has shifted toward organic meat, so you decide to include an attribute variable Z (Z=1 for organic pork, Z=0 for non-organic pork), and the new estimated function isQ?D?= 190 – 20P + 20Pbeef+ 2Y + 15Z(1) What is the demand function for organic pork at average Pbeef = $4.00/kg, average Y=$12.5 thousands, and Z = 1? Draw the demand curve and label the intercepts on both price and quantity axis. How does the demand curve for organic pork compare with the demand curve for non-organic pork that you have solved in Homework 1 Problem 4? Show the direction of the movement of demand curve. (7 points)(2) Suppose supply function for organic processed pork is estimated to beQs = 88 + 40PSolve for the market clearing price and quantity for organic pork. Show your calculation. Graph the supply curve, show the value of equilibrium price and quantity on your graph in (1). (3) Suppose average beef price decreases to $3.75/kg, what is the demand function for organic pork at average Pbeef = $3.75/kg, average Y=$12.5 thousands, and Z = 1? Draw the new demand curve and label the intercepts on both price and quantity axis. How does the new demand curve for organic pork compare with the previous one in (1)? Show the direction of the movement of demand curve. (7 points)