Questions 1-16: Given the following information about bushels of corn: Price per
ID: 1145247 • Letter: Q
Question
Questions 1-16: Given the following information about bushels of corn:
Price per Bushel
Quantity Demanded
Quantity Supplied
$1
650
100
$2
540
120
$3
350
150
$4
200
200
$5
190
300
$6
175
410
1. What is the equilibrium price?
2. What is the equilibrium quantity?
If the price of a bushel of corn is $3 per bushel
3. determine whether a surplus or a shortage exists.
4. determine the amount of this shortage or surplus.
If the price of a bushel of corn is $5 per bushel
5. determine whether a surplus or a shortage exists.
6. determine the amount of this shortage or surplus.
If the demand for bushels of corn increases by 110 bushels at each price level, graph this new demand curve on a second graph with the original supply curve and show the new equilibrium.
7. What is the new equilibrium price?
8. What is the new equilibrium quantity?
Start from the original data in the table. Now, suppose the supply of bushels of corn increases by 420 bushels at each price level. Graph this new supply curve on a third graph with the original demand curve and show the new equilibrium.
9. What is the new equilibrium price?
10. What is the new equilibrium quantity?
Start from the original data in the table. Now, suppose the government imposed a minimum price of $6 per bushel of corn
11. What is the economic term for this?
12. What is the effect in the market of such a government action?
13. Give a real example of this in the real world.
Start from the original data in the table. Now, suppose the government imposed a maximum price of $2 per bushel of corn
14. What is the economic term for this?
15. What is the effect in the market of such a government action?
16. Give a real example of this in the real world.
17. What is the mathematical term to describe the relationship between price and quantity supplied?
18. What is the mathematical term to describe the relationship between price and quantity demanded?
19. Suppose the cost of paying workers to stock the shelves when selling hamburger buns increases. What happens to the demand for hamburger buns as a result?
20. Ceteris paribus, what causes the quantity demanded for a product to decrease?
Price per Bushel
Quantity Demanded
Quantity Supplied
$1
650
100
$2
540
120
$3
350
150
$4
200
200
$5
190
300
$6
175
410
Explanation / Answer
Equilibrium price is 4 at which quantity demanded =quantity supplied
E quilbrium quantity is 200 (later which above condition is fulfilledl)
At 3 quantity demanded=350 and quantity supplied =150. So there is shortage
The amount of shortage=350-150=250 bushels of corn
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