A. What is the equilibrium price in this market? $________

At what price is there neither a shortage nor a surplus? $________

B. Graph the demand for wheat and the supply of wheat. Be sure to locate the equilibrium price and quantity.

Instructions: Use the tools provided 'Supply' and 'Demand' to draw the demand and supply curves using the data in the table. Include each price-quantity combination. Each line should contain 6 reference points. Then use the tool provided 'Eq' to identify the equilibrium price and quantity.

Instructions: Enter all numeric values without a minus sign.

C. How big is the surplus or shortage at $3.40?

There is a ________ of ________ thousand bushels.

What if the price is $4.90?

There is a ________ of ________ thousand bushels.

D. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? _______ thousand bushels.

E. How big a surplus or shortage results if the price is 30 cents lower than the equilibrium price?_______ thousand bushels.

Transcribed Image Text:

Thousands of Bushels Demanded 88 81 75 70 66 63 Price per Bushel $3.40 3.70 4.00 4.30 4.60 4.90 Thousands of Bushels Supplied 65 71 75 78 80 81 Surplus (+) or Shortage (-) Thousands of Bushels Demanded 88 81 75 70 66 63 Price per Bushel $3.40 3.70 4.00 4.30 4.60 4.90 Thousands of Bushels Supplied 65 71 75 78 80 81 Surplus (+) or Shortage (-)

Answer rating: 100% (QA)

a The equilibrium price in this market is where demand equals supply ie 400 At ... View the full answer