The table below shows the total demand and supply for bushels of wheat permonth.DemandPrice per bushel($)Supply(*000)(*000)853.4072803.7073754.0075704.3077654.6079604.9081Required:(i)Explain what is the situation that arises when the product price is$3.40 and $4.90?

Answered: Image /qna-images/answer/e8754bc0-f916-4e04-a724-b6cc59d3ccf6.jpg

Answered: The table below shows the total demand…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 2DQ

See similar textbooks

Similar questions

Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs) 140 500 1500 120 750 1200 100 1000 1000 80 1250 750 60 1500 600 40 1750 300 Find out equilibrium price and quantity.
The table below shows the total demand and supply for bushels of wheat per month. Supply (*000) Demand Price per bushel (S) (*000) 85 3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81 Required: There has been discussion being raised "Surpluses drives prices to go up meanwhile shortages drives the prices to go down". What is your perspective on this statement? Do you agree? (i)
enter/exit supply/demand increase/decrease increasing/decreasing
Suppose you are a business owner. Discuss how you would use various demand elasticities (own-price, cross-price & income) in your decision making process.
Price per Pound (dollars) $16 14 12 10 8 6 4 2 Quantity of Cheese Demanded (pounds) between $14 and $16 between $2 and $8 over the entire range of prices between $2 and $4 3 4 5 6 7 8 9 10 Refer to the table above, over what range of prices is the demand elastic?
a) Everything else held constant, what will happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up and health officials announced that eating peanut butter was good for your health? Provide brief explanation. b) Everything else held constant, there is a 12 percent increase in the price of peanut butter jar. As a result, quantity demanded drops by 20 percent. Calculate the price elasticity of demand for a jar of peanut butter. ( c) For part (b), explain briefly whether the revenue will increase or decrease?
The following table shows the market demand and supply information ( in tons) at different prices for wheat production in India. Price ($) Demand (T) Supply (T) 1.2 80 35 1.7 78 40 2.2 65 65 2.7 50 55 3.2 33 65 3.7 20 75 4.2 18 100 a) According to the above information, what is the price elasticity of demand if the market price got down from 3.7$ to 2.2$ (calculate using the midpoint formula) b) What type of elastic product is wheat in India and what will affect total revenue if wat producers decided to increase the price? c) What are the market equilibrium price and quantity? d) Assume the wheat production reduce by 5 tonnes due to bad weather patterns and then what is the new market equilibrium price and quantity?
The government in your country is considering three programs that affect the market for cigarettes. Program : A price-support program for tobacco farmers. Determine the impact on the market if this program is implemented (i) Impact on Demand? (ii) Impact on Supply? (iii) Impact on Price? (iv) Impact on Quantity?
If coffee and tea are good substitutes for consumers, what can we conclude about their elasticity from this information? Their cross-price elasticities are greater than zero. Their income elasticities are less than zero. Their price elasticities of supply are less than one. Their price elasticities of demand are less than one.
In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. (a) What is the equilibrium price and quantity? (b) What is the price elasticity at a price of £35? (c) What do you expect will happen to total expenditure on this good if the price increases from £35 to £40? Is this expectation confirmed if you calculate the total revenue for each price?
Price per Ice-cream (Rs.) Demand for Ice cream (Qd) Supply for Ice cream (Qs) 140 500 1500 120 750 1200 100 1000 1000 80 1250 750 60 1500 600 40 1750 300 Draw the market equilibrium for Ice cream
What effect will each of the following have on the supply of auto tires? An increase in the price of rubber used in the production of tires.

SEE MORE QUESTIONS

Recommended textbooks for you

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Microeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506893

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Macroeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506756

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics: Principles & Policy

Economics

ISBN:

9781337794992

Author:

William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:

Cengage Learning

Microeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506893

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Macroeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506756

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

The table below shows the total demand and supply for bushels of wheat per month. Price per bushel (S) Demand Supply (*000) ('000) 85 3.40 72 80 3.70 73 75 4.00 75 70 4.30 77 65 4.60 79 60 4.90 81 Required: (i) Explain what is the situation that arises when the product price is