Question

Refer to the table below. Fill in the surplus-shortage column (gray-shaded cells).

Thousands of Bushels Demanded	Price per Bushel	Thousands of Bushels Supplied	Surplus (+) or Shortage (-)
88	$3.40	65
81	3.70	71
75	4.00	75
70	4.30	78
66	4.60	80
63	4.90	81

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. 

c. How big is the surplus or shortage at $3.40? 

There is a _______  of  _______  thousands of bushels 

How big is the surplus or shortage at $4.90? 

There is a _______  of _______  thousands of bushels 

d. How big a surplus or shortage results if the price is 60 cents higher than the equilibrium price? 

_______ thousands of bushels

e. How big a surplus or shortage results if the price is 30 cents lower than the equilibrium price? 

_______  thousands of bushels

Answer 1

Thousands of Bushels demanded Surplyst) on Shostage() Price per Bushel 3.4 3.7 Thousands of Bushels Suppled 65 71 - 23 - 10 7 75 + 4.3 + 4.6 4.9 + EE* hier 5.07 os 75 Quan es to (c) (Shostage of 23 thousands of bushels Surplus) of (18 thousands of bushels (d) If P = 406, there is surplus of [14 thousands of bushels e) If p= 3.7, there is shostage of [10] there sands of busthels