Question: taken from ec202 assignment solution please Part A- Practical Questions Question 1 (5 marks) Suppose that the quantity of corn supplied depends on the price

taken from ec202 assignment solution please

taken from ec202 assignment solution please Part A- Practical Questions Question 1

Part A- Practical Questions Question 1 (5 marks) Suppose that the quantity of corn supplied depends on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable income (1). The equations describing the supply and demand relationships are Q' = 20R + 100P and Q = 4000 - 100P + 101. a) Sketch a graph of demand and supply curves (1 marks) b) Sketch a graph that shows the effect of an increase in rainfall on the equilibrium price and quantity of corn. (2 marks) c) Sketch a graph of demand and supply curves that shows the effect of a decrease in disposable income on the equilibrium price and quantity of corn. (2 marks)

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