1.The following supply and demand schedules describe a hypothetical Canadian market for potash.

Price

($ per Tonne)

Quantity Supplied

(million tonnes)

Quantity Demanded

(million tonnes)

280

8.5

12.5

300

9.0

11.0

320

9.5

9.5

340

10.0

8.0

360

10.5

6.5

380

11.0

5.0

1. What is the equilibrium price of potash?
2. How much potash would actually be purchased if the price was $280 per tonne?
3. How much potash would actually be sold if the price was $360 per tonne?
4. At a price of $280 per tonne, is there excess supply or demand? How much?
5. At a price of $360 per tonne, is there excess supply or demand? How much?
6. If the price is $280 per tonne, describe the forces that will cause the price to change.
7. If the price is $360 per tonne, describe the forces that will cause the price to change.