Early in the 20th century, the advent of the tractor revolutionized the production of wheat.

1. Draw a properly labeled market graph of supply and demand to show the effect that this new production technique had on the price and quantity of wheat.
2. To stabilize prices, the government established an effective price floor for wheat. On a new graph, show graphically the price floor and identify what happened to each of the following in relation to equilibrium:
3. Quantity demanded
4. Quantity supplied
5. Consumers surplus
6. Years later, the government abolished the effective price floor causing the price of wheat to return to equilibrium.
7. Identify if the price increased or decreased after the law was abolished.
8. Identify how abolishing the law affected quantity supplied and quantity demanded