Refer to the table below. Fill in the surplus-shortage column
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
What if the price is $4.90?
There is a ________ of ________
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
|Q Demanded||Price||Q Supplied||Surplus/Shortage|
(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