Section 4.1: Page 186: 68 Supply and demand for com. At $2.13 per bushel, the annual supply for corn in the Midwest is 8.9 billion bushels and the annual demand is 6.5 billion bushels. When the price falls to $1.50 per bushel, the annual supply decreases to 8.2 billion bushels and the annual demand increases to 7.4 billion bushels. Assume that the price-supply and price-demand equations are linear. A) Find the price-supply equation. B) Find the price-demand equation. C) Find the supply and demand if bushels of corn are $1.25 per bushel. Discuss the stability of the corn market at this price level. D) Find the equilibrium price and quantity and interpret the meaning.

Section 4.1: Page 186: 68 Supply and demand for com. At $2.13 per bushel, the annual supply for corn in the Midwest is 8.9 billion bushels and the annual demand is 6.5 billion bushels. When the price falls to $1.50 per bushel, the annual supply decreases to 8.2 billion bushels and the annual demand increases to 7.4 billion bushels. Assume that the price-supply and price-demand equations are linear. A) Find the price-supply equation. B) Find the price-demand equation. C) Find the supply and demand if bushels of corn are $1.25 per bushel. Discuss the stability of the corn market at this price level. D) Find the equilibrium price and quantity and interpret the meaning.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 1P

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