Chapter 4.1, Problem 68E

Supply and demand for corn. At $\text{\$}2.13$ 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 $\text{\$}1.50$ 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 equilibrium price and quantity.

(D) Graph the two equations in the same coordinate system and identify the equilibrium point, supply curve, and demand curve.