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Microeconomics question The following table shows the demand and supply of wheat in Canada. Price ($) Quantity Demanded Quantity Supplied 0.00 500 125 1.00 400

Microeconomics question

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The following table shows the demand and supply of wheat in Canada. Price ($) Quantity Demanded Quantity Supplied 0.00 500 125 1.00 400 175 .50 350 200 2.00 300 225 2.50 250 250 3.00 200 275 3.50 150 300 4.00 100 25 5.00 0 375 1. Graph the demand and supply curves. What is the equilibrium price and equilibrium quantity of wheat? Answer: 2. Bad weather destroys wheat crop in Canada. Show graphically the effect of this on wheat market in Canada. Answer: 3. Canada population is growing by over 2 million people per year. Show the effect of population growth on Canada wheat market. Answer: 4. Suppose the local government enforces a price floor $1.50. Show in your diagram the effect on price and quantity exchanged

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