5.7 Suppose the demand and supply curves for rice in Japan are given by the following equations:

Qd = 120 - 30P Qs = 40 + 10P where Qd = million tons of rice the Japanese would like to buy each year; Qs = million tons of rice Japanese farmers would like to sell each year; and P = price per ton of rice (in hundreds).

a. Fill in the following table:

b. Use the information in the table to find the equilibrium price and quantity.

c. Graph the demand and supply curves and identify the equilibrium price and quantity.

Transcribed Image Text:

Price (Per ton) Quantity Demanded (Qa) Quantity Supplied (Q) $ .50 $ 1.00 $ 1.50 $ 2.00 $ 2.50