The given supply and demand schedules describe a hypothetical market for potash. a. What is the equilibrium price of potash? b. At a price of $290 per tonne, is there excess supply or demand? How much? There is million tonne(s) of excess c. At a price of $415 per tonne, is there excess supply or demand? How much? There is million tonne(s) of excess d. If the price is $290 per tonne, describe the forces that will cause the price to change. Purchasers will offer purchasers. Sellers will ask a than the prevailing price to other price for the quantities that they do Price ($ per tonne) 290 315 340 365 390 415 Quantity Supplied (million tonnes) 5.5 6.5 7.5 8.5 9.5 10.5 Quantity Demanded (million tonnes) 11.5 10.5 9.5 8.5 7.5 6.5

The given supply and demand schedules describe a hypothetical market for potash. a. What is the equilibrium price of potash? b. At a price of $290 per tonne, is there excess supply or demand? How much? There is million tonne(s) of excess c. At a price of $415 per tonne, is there excess supply or demand? How much? There is million tonne(s) of excess d. If the price is $290 per tonne, describe the forces that will cause the price to change. Purchasers will offer purchasers. Sellers will ask a than the prevailing price to other price for the quantities that they do Price ($ per tonne) 290 315 340 365 390 415 Quantity Supplied (million tonnes) 5.5 6.5 7.5 8.5 9.5 10.5 Quantity Demanded (million tonnes) 11.5 10.5 9.5 8.5 7.5 6.5

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 1P

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