Suppose demand is P= 600 - Q and supply is P=1Q in the soybean market, where @ is tons of soybeans per year. The government sets a price support at P= $500/ton and purchases any excess supply at this price. In response, as a long-run adjustment, farmers switch their crops from corn to soybeans, expanding supply to P= (0.5) Q. a. How does excess supply with the larger supply compare to excess supply prior to the farmers switching crops? Excess supply before crop switch: tons Excess supply after crop switch: tons b. How much more does the government have to spend to buy up the excess supply?Review Question 02-07 Which of these are examples of a market in which the allocationunction of price is not very important? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Wheat Cars Oil LandSuppose that the U.S. market for new vinyl LPs in 2018 had supply and demand curves given by QS = P/4 and Qd = 40 - P, where Pis in dollars and Q represents millions of LPs sold. Instructions: Enter your answers as whole numbers. a. Use the given curves to estimate the number of LPs and the equilibrium price per LP. The equilibrium price of LPs is $ The equilibrium number per LP is 32 @ million. b. The total revenue from LP sales in 2018 is $ |256 million. c. In 2019, revenues from sales of LPs may exceed revenues from the sale of CDs for the first time since the mid-1990s. Since 2013, revenues from LP sales have more than doubled, while dollar sales of CDs have fallen by two-thirds. Over the same period, while CD prices have held steady, LP retail prices have increased by over 15 percent. Which of the following determinants of supply and demand could explain the weakness of CDs, the comeback of LPs, and the remarkable strength of LP prices? Instruction: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. O Technology Expectations Incomes x Population Factor prices Tastes