Draw a standard supply and demand diagram for the global soybean market that has a market equilibrium price of $9 per bushel and market equilibrium quantity of 125 million bushels. Next, there is a significant drought in the midwestern U.S. which is a key global soybean growing region. If so, which of the outcomes below could be the new global equilibrium in soybean market?

Question 13 options:

a)

P=$8, Q= 115 million bushels

b)

P=$8, Q= 135 million bushels

c)

P=$10, Q= 110 million bushels

d)

P=$10, Q= 130 million bushels