The supply and demand schedules below show hypothetical prices and quantities in the market for com. The initial quantity supplied is shown by Qs, and the quantity demanded is Qa- The Market for Corn (in millions of bushels) Price Qd Qs $6.00 220 400 $5.50 240 360 $5.00 260 320 $4.50 280 280 $4.00 300 240 $3.50 320 200 $3.00 340 160 1. Plot the supply and demand curves for the initial supply and demand. Q, and Qa, on the graph that follows the questions. a. The equilibrium price of corn is s .50 b. The equilibrium quantity of corn is 280 million bushels. c. At a price of $3.00/bushel. there would be a (shortage. surplus) Short for 180 million bushels, and the price would tend to (fail, rise) Cise. d. At a price of $5.00/bushel. there would be a (shortage. surplus) Surplus of 60 million bushels, and the price would tend to (fall. rise) Fal 2. Suppose that the supply of corn increased by 60 million bushels at every price. Show the new supply schedule as Q' on the previous table. a. The new equilibrium price of corn is S b. The new equilibrium quantity of corn is million bushels. c. Has the demand for corn changed as a result of this change in supply? Explain briefly. 3. Give an example of a factor that could have caused such an increase in the supply of ..com. and explain briefly.... . 4. Notice that the increase in supply has resulted in a lower price and a higher quantity. Does this violate the Law of Supply. which states that the quantity of a good supplied increases as its price increases, all else equal? Explain briefly