Suppose that the demand for wheat (measured in bushels) is given by:

Suppose that the demand for wheat (measured in bushels) is given by:

Q_w²= 90-8P_w

whereQ_wis the number of bushels demanded in millions andP_wis the price per bushel.

1. This year's harvest is 8 million bushels. Calculate the equilibrium quantity.
2. This year's harvest is 8 million bushels. Calculate the price elasticity of demand at that point.
3. Draw the demand curve and identify the equilibrium price and quantity (note that the quantity is 8 million bushels.
4. Draw the Total Revenue Curve and identify theTR and Q on that drawing.
5. If next year's harvest were to fall below 8 million bushels, would the revenues received by wheat farmers increase or decrease? This question can be answered in a short sentence.