Question 1: Suppose that the demand and supply curve for wheat (measured in million bushels) in the US are given by QD(P)=3000-300P and Qs(P)=1900+200P, respectively. (a) Determine the equilibrium price and quantity of wheat. (b) Suppose that because of a bad harvest in another country, the demand for US wheat is increased by 1000 units (i.e., 1 billion bushels) independent of the price P. Determine the new equilibrium price and quantity.

Question 1: Suppose that the demand and supply curve for wheat (measured in million bushels) in the US are given by QD(P)=3000-300P and Qs(P)=1900+200P, respectively. (a) Determine the equilibrium price and quantity of wheat. (b) Suppose that because of a bad harvest in another country, the demand for US wheat is increased by 1000 units (i.e., 1 billion bushels) independent of the price P. Determine the new equilibrium price and quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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