A local agribusiness enterprise has employed a consultant to estimate its supply curve for a new hybrid corn seed and to estimate the demand faced for this seed in its local marketplace.The consultant has determined the following:

Demand:Q = 890 - P

Supply:Q = 50 + 3 P

Questions

1.Given the two estimates, solve for the market equilibrium price and quantity.

890-P= 50 +3P

890-50= 3P =P

840=4P

P= 210, which is the equilibrium price

Q= 890-P

Q= 890-210= 680, which is the equilibrium quantity

Q= 50 + 3*210=680

2.Plot the supply and demand curve on the same graph, use price increments of $50 and go from $0 to $500.Is the market equilibrium the same on your graph as you calculated in question 1?