Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 2, Problem 5E
(a)
To determine
The change in free market price of wheat in the US.
(b)
To determine
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Students have asked these similar questions
Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was
Q = 3,244 - 283P.
Of this, total domestic demand was
Qn = 1700 - 107P,
and domestic supply was
Qs = 1,944 + 207P
Suppose the export demand for wheat falls by 50 percent.
U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States?
The free-market price of wheat in the United States after the drop in export demand is $1.31. (Enter your response rounded to two decimal places.)
Do famers have much reason to worry?
O A. Farmers have reason to worry because the equilibrium quantity decreases from 3,492.55 million bushels to 2,215.17 million bushels.
O B. Farmers have reason to worry because the market price for wheat decreases from $3.65 per bushel to $1.31 per bushel.
OC. Farmers have no reason to worry because the equilibrium quantity decreases from 2,592.55 million bushels to 2,215.17 million bushels.
O…
India produces wheat that it consumes domestically and exports to Sri Lanka. Sri Lanka doesn’t produce any wheat and is totally dependent on India. The total demand of wheat is given by Q = 3244 -283P. The domestic demand of India is given by the equation Qd = 1700-107P. The total supply of wheat is given by equationQs= 1944 + 207P.(P is in Rs per Kg and Q is in lakh Kg.)
a.Calculate the market price of wheat.
C.Suppose the export demand for wheat falls by 40 percent, will the market price change? If yes, then what is the newmarketprice?
The domestic demand (Qpp) for wheat in the United States is estimated to be
QDD=1430-55P,
where the quantity of wheat is measured in millions of bushels per year. Suppose China also demands U.S. wheat (Qpc) and that its demand is given by
QDc=1920-60P.
What is the total demand for U.S. wheat, assuming the only two sources of demand are domestic and Chinese?
The total demand for U.S. wheat is
OA. Qp =3350-115P for all P.
O B. Q =3350-115P for P≤ $26 and Qp = 1920-60P for P> $26.
OC. Q=1920-60P for all P.
O D. Q =3350-115P for P ≤ $32 and Qp =1430-55P for P> $32
E. Q =3350-115P for P≤ $26 and Qp =1430-55P for P> $26.
Chapter 2 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - If a 3-percent increase in the price of corn...Ch. 2 - Prob. 4RQCh. 2 - Explain why for many goods, the long-run price...Ch. 2 - Why do long-run elasticities of demand differ from...Ch. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - In a discussion of tuition rates, a university...
Ch. 2 - Suppose the demand curve for a product is given by...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 1ECh. 2 - Consider a competitive market for which the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - In 2010, Americans smoked 315 billion cigarettes,...Ch. 2 - In Example 2.8 we examined the effect of a...Ch. 2 - In Example 2.8 (page 52), we discussed the recent...Ch. 2 - Prob. 12E
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