Based on the perfect competition model as depicted in the following diagrams, explain the short-run and long-run economic adjustments occurring in the following two markets. Please distinguish the market diagram and individual firm's diagram. Initial market demand and supply curves and firm's marginal revenue curve are denoted as Do, So and MR, respectively.

(a) Explain how the growing world population is influencing the world market for wheat and a representative individual wheat farmer.

Price (dollars per bushel of wheat) Price and cost (dollars per bushel of wheat) 100 MC ATC LA MR MR 2 D LA 10 15 20 25 30 35 50 100 150 200 250 300 350 400 Quantity [billions of bushels per year) Quantity [thousands of bushels per year)