Refer to the table below. Fill in the surplus-shortage column (gray cells). Inst
ID: 1167536 • Letter: R
Question
Refer to the table below. Fill in the surplus-shortage column (gray cells).
Instructions: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
A. What is the equilibrium price in this market? $________
At what price is there neither a shortage nor a surplus? $________
B. Graph the demand for wheat and the supply of wheat. Be sure to locate the equilibrium price and quantity.
Instructions: Use the tools provided 'Supply' and 'Demand' to draw the demand and supply curves using the data in the table. Include each price-quantity combination. Each line should contain 6 reference points. Then use the tool provided 'Eq' to identify the equilibrium price and quantity.
Instructions: Enter all numeric values without a minus sign.
C. How big is the surplus or shortage at $3.40?
There is a ________ of ________ thousand bushels.
What if the price is $4.90?
There is a ________ of ________ thousand bushels.
D. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? _______ thousand bushels.
E. How big a surplus or shortage results if the price is 30 cents lower than the equilibrium price?_______ thousand bushels.
Thousands of Bushels Demanded Thousands of ice per Bushel Bushels Supplied Surplus+) or Shortage (-) Price per Bushel $3.40 3.70 4.00 4.30 4.60 4.90 65 71 75 78 80 81 81 75 70 63Explanation / Answer
(1)
Q Demanded
Price
Q Supplied
Surplus/Shortage
88
3.4
65
-23
81
3.7
71
-10
75
4
75
0
70
4.3
78
8
66
4.6
80
14
63
4.9
81
18
(a) equilibrium price is when the market demand equals market supply (that is, there is neither surplus, nor shartage).
As the table show, equilibrium price is $4
(b) The graph asks for a specific graphical tool which cannot be used in this Q&A Board.
However, equilibrium price = $4 & quantity = 75
(c) When price = 3,4, demand = 88 & supply = 65, so there is a shortage of 23.
If price is 4.90, Surplus = 18
(d) Here, Price = 4.6, so Surplus = 14
(e) Here, price = 3.70, so Shortage = 10
Q Demanded
Price
Q Supplied
Surplus/Shortage
88
3.4
65
-23
81
3.7
71
-10
75
4
75
0
70
4.3
78
8
66
4.6
80
14
63
4.9
81
18
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