Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi can you answer this question. I needed help with this. thank you The table below shows the market demand and supply schedules for corn.

hi can you answer this question. I needed help with this. thank you

image text in transcribed
The table below shows the market demand and supply schedules for corn. DEMAND SUPPLY Price (per bushel) Quantity Price (thousands of bushels) (per bushel) Quantity $7.00 ( thousands of bushels) 10 $ 7.00 600 45 12 6.0 5.00 35 14 5.00 4.00 26 18 4.00 18 3.00 25 3.00 15 2.00 34 2.00 12 1. 00 46 1.00 10 a) Illustrate supply, demand, and market equilibrium on the graph below. Label them S1, D1 . P1 . and 91. 7,00 6,00 Price ( P) 3,00 2100 1.00/ 22 24 26 28 30 32 34 36 Quantity (thousands of bushels) b) If the price of corn is $ 7.00 per bushel, there is a (shortage, surplus) of 000 bushels, which will force the price (up, down) to equilibrium. c) If the price of corn is $2per bushel, there is a (shortage, surplus) of , 000 bushels, which will force the price (up, down) to equilibrium. d) Assume that good growing conditions increase the quantity that will be supplied by 10,000 bushels at each price. Illustrate the new supply curve in the graph above and label it S,. The new market equilibrium occurs at a price of and a quantity of e) Unfortunately for the farmers, consumer tastes change and the quantity that will be demanded decreases by 12,000 bushels at each price. Illustrate the new demand curve in the graph above and label it D,. The new market equilibrium and a quantity that results from D, and S, occurs at a price of of

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Great Convergence Information Technology And The New Globalization

Authors: Richard Baldwin

1st Edition

067466048X, 9780674660489

More Books

Students also viewed these Economics questions

Question

Understand the use of different performance-rating techniques

Answered: 1 week ago