The table below shows the quantity demanded and supplied on barley for each price per bushel.Price per BushelQuantity Demanded per Month (million bushels)Quantity Supplied per Month (million bushels)Sate of the Market(shortage or surplus)$2.30400300 $2.40370320 $2.50340340 $2.60310360 $2.70280380 Based on the information above, plot a chart with supply and demand curves.What are the equilibrium price and quantity of barley?If the market price of barley is $2.70 per bushel, is there a shortage or surplus of barley? Calculate the shortage or surplus. As a result, would the market price rise or fall?If the market price of barley is $2.40 per bushel, is there a shortage or surplus of barley? Calculate the shortage or surplus. As a result, would the market price rise or fall?

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Answered: The table below shows the quantity…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows the quantity demanded and supplied on barley for each price per bushel.

Price per Bushel	Quantity Demanded per Month (million bushels)	Quantity Supplied per Month (million bushels)	Sate of the Market (shortage or surplus)
$2.30	400	300
$2.40	370	320
$2.50	340	340
$2.60	310	360
$2.70	280	380

Based on the information above, plot a chart with supply and demand curves.
What are the equilibrium price and quantity of barley?
If the market price of barley is $2.70 per bushel, is there a shortage or surplus of barley? Calculate the shortage or surplus. As a result, would the market price rise or fall?
If the market price of barley is $2.40 per bushel, is there a shortage or surplus of barley? Calculate the shortage or surplus. As a result, would the market price rise or fall?

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