$5 B. D. 6. 8 10 12 14 16 18 20 Bushels of Corn (thousands per week) Refer to the above diagram of the market for corn. If the price in this market is $3 per bushel, then there will be O a shortage of 8 thousand bushels. O a surplus of 4 thousand bushels. O a surplus of 8 thousand bushels. O equilibrium in the market. A --- ---- 2. Price (per bushel)

Using supply and demand diagrams show the effects on equilibrium price and quantity for the following situations. Begin at an initial equilibrium and show the effects on the demand or supply curves, as well as the effect on equilibrium price and quantity. (You can just draw them by hand and upload the picture.) The impact of a drought in the Midwest on the market for wheat. The impact of a fall in the price of steel on the market for new cars. The impact of a study showing orange juice consumption lowers the risk of heart attacks on the market for orange juice, and on the market for cranberry juice. The impact of an increase in the price of hot dogs on the market for hot dog buns.

Homework (Ch 07) The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $105. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko, purple (diamond symbols) for Musashi, tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $105. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) ? 240 210 Sean Jacques 180 150 Kyoko 120 90 Musashi 60 C O PRICE (Dollars per smartphone)…

s) In one graph, show what would happen to the market price and quantity for lemons, which can be produced from the same resources as bananas, as a result of the new findings above bananas.