LO3

a. What is the equilibrium p?r icAte what price is eth er neither a shortage nor a surplus? Fill in the surplusshortage column and use it to confirm your answers.

b. Graph the demando r f wheat and the suppfl yw oheat .

Be sure to label the axes of your graph correctly.

Label equilibrium price P and equilibrium quantity Q.

c. How big is the surplus or shortage at $t 3.40? A

$4.90? How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price?

30 cents lower than the equilibrium price?

Transcribed Image Text:

Surplus (+) Shortage (-) Thousands of Bushels Demanded Price per Bushel Thousands of Bushels or Supplied 85 $3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81