Price per bushel

Quantity Demanded

(bushels)

Quantity Supplied (bushels)

US$2

40,000

0

4

36,000

4,000

6

30,000

8,000

8

24,000

16,000

10

20,000

20,000

12

18,000

28,000

14

12,000

36,000

16

6,000

40,000

2.Refer to Table 1-2. The table contains information about the wheat market. Use the table to answer the following questions.

a.What are the equilibrium price and quantity of wheat?

b.Suppose the prevailing price is US$6 per bushel. Is there a shortage or a surplus in the market?

c.What is the quantity of the shortage or surplus?

d.How many bushels will be sold if the market price is US$6 per bushel?

e.If the market price is US$6 per bushel, what must happen to restore equilibrium in the market?

f.At what price will suppliers be able to sell 36,000 bushels of wheat?

g.Suppose the market price is US$14 per bushel. Is there a shortage or a surplus in the market?

h.What is the quantity of the shortage or surplus?

i.How many bushels will be sold if the market price is US$14 per bushel?

j.If the market price is US$14 per bushel, what must happen to restore equilibrium in the market?