Price per Bushel

Quantity Demanded

(bushels)

Quantity Supplied (bushels)

$3

36,000

0

6

30,000

3,000

9

24,000

6,000

12

19,000

10,000

15

15,000

15,000

18

10,000

21,000

21

7,000

28,000

24

4,000

36,000

Refer to Table 1. The table contains information about the corn market. Use the table to answer the following questions.

(i)What are the equilibrium price and quantity of corn?

(ii)Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market?

(iii)What is the quantity of the shortage or surplus?

(iv)How many bushels will be sold if the market price is $9 per bushel?

(v)If the market price is $9 per bushel, what must happen to restore equilibrium in the market?

(vi)At what price will suppliers be able to sell 24,000 bushels of corn?

(vii) Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market?

(viii)What is the quantity of the shortage or surplus?