on p.65 (22nd ed.) or p.73 (21st Ed.) Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as follows: Thousands of bushels demanded Price per bushel Thousand of bushels supplied 85 80 75 70 65 60 $3.40 3.70 4.00 4.30 4.60 4.90 72 73 75 77 79 81 a . What is the equilibrium price? ( $ _____ ) What is the equilibrium quantity? ( _______ ) Fill in the surplus-shortage column. Now use it to explain why your answers are correct: At the immediately lower price of $3.70, there is a ( shortage, surplus ) of ( ______ ) bushels. At the immediately higher price of $4.30, there is a ( shortage, surplus ) of ( ______ ) bushels. b. ( exrtra pts) Graph the demand for wheat and the supply of wheat. Rough one is good. Be sure to label the axes of your graph correctly. Label equilibrium price P and the equilibrium quantity Q. c. Why will $3.40 not be the equilibrium price in this market? Why not $4.90? _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ d. "Surpluses drive prices up; shortages drive them down." Do you agree? Or not? Explain. _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________