In the following demand and supply functions P is the price ($ per kilogram) of processed beef, Pp is the price of pork, Y is average income, Pc is the price of cattle & Q is the quantity of processed beef (million of kilograms per year). Using the supply & demand functions & the values of the other variables, solve for the equilibrium price & quantity. Draw the demand & supply curves on the same graph and indicate the equilibrium price and quantity.
Demand function: QD = 20 - 8P + 4 Pp + 2Y
Supply function: Qs = 4 + 4P - 2Pc
Other variables: Pp = $4, Pc = $4, & Y = $12