The demand and supply functions for wheat are as follows: Q D w = 4.5 - 0.4
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Question:
The demand and supply functions for wheat are as follows:
QDw = 4.5 - 0.4 P
Qsw = 1.5 + 0.6 P,
where Qsw is the quantity supplied of wheat (in billions of bushels), QDx is the quantity demanded of wheat (in billions of bushels), and Pw is the farm price of wheat (in dollars per bushel) What is the equilibrium price of wheat?
a. Using the information in question #1, what is the equilibrium quantity of wheat sold?
b. Using the information in question #1, if the price of wheat is set at $4.00 per bushel, the market will have
d.Using the information in question #1, if the price of wheat is set at $2.00 per bushel, the market will have
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