Using the schedules given, plot the demand curve and the supply curve. Label the axes and indicate for each axis the units being used to measure price and quantity. Then answer the questions. PriceQuantity demanded(bushels of wheat) PriceQuantity supplied(bushels of wheat) $4.20125,000$4.20230,000 $4.00150,000$4.00220,000 $3.80175,000$3.80210,000 $3.60200,000$3.60200,000 $3.40225,000$3.40190,000 $3.20250,000$3.20180,000 $3.00275,000$3.00170,000 Indicate the equilibrium price and quantity on the graph by drawing lines from the intersection of the supply and demand curves to the price and quantity axes.If the Federal government decided to support the price of wheat at $4.00 per bushel, tell whether there would be a surplus or shortage and how much it would be.Demonstrate your answer to part (c) on your graph being sure to label the quantity you designated as the shortage or surplus.

The equilibrium is the intersection of the quantity demanded and the quantity supplied. The surplus…

Answered: Using the schedules given, plot the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the schedules given, plot the demand curve and the supply curve. Label the axes and indicate for each axis the units being used to measure price and quantity. Then answer the questions.

Price	Quantity demanded (bushels of wheat)	Price	Quantity supplied (bushels of wheat)

$4.20	125,000	$4.20	230,000
$4.00	150,000	$4.00	220,000
$3.80	175,000	$3.80	210,000
$3.60	200,000	$3.60	200,000
$3.40	225,000	$3.40	190,000
$3.20	250,000	$3.20	180,000
$3.00	275,000	$3.00	170,000

Indicate the equilibrium price and quantity on the graph by drawing lines from the intersection of the supply and demand curves to the price and quantity axes.
If the Federal government decided to support the price of wheat at $4.00 per bushel, tell whether there would be a surplus or shortage and how much it would be.
Demonstrate your answer to part (c) on your graph being sure to label the quantity you designated as the shortage or surplus.

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