Question

At$0.49 per bushel, the daily supply for wheat is 378 bushels, and the daily demand is 587 bushels. When the price is raised to $0.71 per bushel, the daily supply increases to 598 bushels, and the daily demand decreases to 477 bushels. Assume that the price-supply and price-demand equations are linear.

1. Find the pice-supply function.

2. Find the price-demand function

3. Find the equilibrium price and equilibrium quantity.

Answer #1

Assume that the market for wheat is in equilibrium with a price
of $50 per bushel and Quantity of Q0. For each scenario,
show that happens to the supply and demand for wheat and indicate
whether supply and demand increases, decreases, or does not change.
Also indicate what happens to the price and quantity of wheat
traded. Each section is to be treated separately.
a. Drought hits hard and a large fraction of the farm land in
the US and...

Demand function: P = 7 – 2Q Supply function: P = 4 + Q Where P
is the farm price in $/bushel and Q is quantity in billions
(1,000,000,000s) of bushels sold. 1. a. Graph the Demand and Supply
curves for wheat and find the equilibrium price and quantity of
wheat sold in this competitive market. You can solve graphically or
algebraically as two equations with two unknowns. Show your
calculations.

The quantity of wheat, in billions of bushels, that wheat
suppliers are willing to produce in a year and offer for sale is
called the quantity supplied and is denoted by S.
The quantity supplied is determined by the price P of
wheat, in dollars per bushel, and the relation is
P = 2.13S ? 0.95.
The quantity of wheat, in billions of bushels, that wheat consumers
are willing to purchase in a year is called the quantity
demandedand is...

The demand and supply equations for the Wheat market are:
Demand: P = 200-4q Supply: P = - 50 + Q Where P = price per bushel,
and Q = quantity 1. Calculate the equilibrium price and quantity.
(1.5 Marks) 2. Suppose the government guaranteed producers a price
floor of AED 90 per bushel. Estimate the effect on the quantity
supplied and demanded. (1.5 Marks) 3. Would the price floor affect
the Market outcome? (Calculate the surplus or shortage )....

The inverse demand curve for wheat is p = 10 – 0.10Q and the
inverse supply curve is p = 0.40Q, where p = dollars per bushel and
Q is billions of bushels of wheat. Wheat is bought and sold in a
perfectly competitive market.
a. Provide a graph of the market for wheat and calculate and
show the equilibrium price and quantity (in billions of bushels) in
the market.
b. If the government provides a price support of $9...

Subject: Managerial Economics
Given the demand and supply equations for wheat Qd =
40 - 3P and Q5 = 5 + 2P. Quantity is measured in bushels
and price is in dollars per bushel. Answer the following
questions:
4.1 What are equilibrium price and quantity?
4.2 Determine quantity demanded, quantity supplied and the
dollar value of the surplus given a price floor of $9.
4.3 Determine quantity demanded, quantity supplied and the
dollar value of the shortage given that there...

PREPARE A GRAPH WHICH SHOWS THE DEMAND AND SUPPLY FOR
A WHEAT WHERE THE TWO CURVES INTERSECT AT THE POINT OF EQUILIBRIUM.
INDICATE, SURPLUS AND SHORTAGE ON THE GRAPH.
DATA:
THE QUANTITIES OF WHEAT FARMERS WILL SUPPLY AT VARIOUS
PRICES: TABLE-1
PRICE PER
BUSHEL
BUSHELS SUPPLIED PER YEAR
DOLLARS………………………………………..12,000
4. DOLLARS………………………………………..10,000
3. DOLLARS………………………………………….7,000
2. DOLLARS………………………………………….4,000
1.
DOLLAR……………………………………………1,000
THE QUANTITIES OF WHEAT CONSUMERS WILL PURCHASE AT
VARIOUS PRICES
PRICE PER
BUSHEL.
BUSHELS DEMANDED PER YEAR
------------------------------------------------------------------------------------------
...

Suppose the market for corn is given by the following equations
for supply and demand:
QS = 2p − 2
QD = 13 − p
where Q is the quantity in millions of bushels per year and p is
the price.
Calculate the equilibrium price and quantity.
Sketch the supply and demand curves on a graph indicating the
equilibrium quantity and price.
Calculate the price-elasticity of demand and supply at the
equilibrium price/quantity.
The government judges the market...

Draw the supply and demand for wheat on a graph, and indicate
the equilibrium price and quantity. Suppose rice and wheat are
consumption substitutes, and corn and wheat are production
substitutes. Describe and show what happens in the market for wheat
when 2 events occur at the same time: 1) the price of corn
increases, and 2), a drought (lack of rain) occurs in rice-growing
regions, causing the supply of rice to fall.. Suppose the drought
in rice has a...

Refer to Example 2.5
on the market for wheat. In 1998, the total demand for U.S.
wheat was
QD=3,244−283P
and the domestic supply was
QS=1,944+207P.
At the end of 1998, both Brazil and Indonesia opened their
wheat markets to U.S. farmers. Suppose that these new markets
add
250 million bushels to U.S. wheat demand. What will be the
free-market price of wheat and what quantity will be produced and
sold by U.S. farmers?
The free-market price of wheat will be...

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