e following table contains information about the wheat market: Price per Bushel (dollars) Quantity Demanded (bushels) Quantity Supplied (bushels) $2 40,000 0 4 34,000 4,000 6 28,000 8,000 8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 14 12,000 36,000 16 6,000 40,000 Draw and label a graph representing this market (demand curve, supply curve, etc.) What is the market price of wheat in this market, and what is the total revenue to farmers at that price? If the farmers then band together and set a price floor of $14 per bushel, what will their total revenue be? Label these two revenue areas on y
- The following table contains information about the wheat market:
|
(dollars) |
Quantity Demanded (bushels) |
Quantity Supplied (bushels) |
|
$2 |
40,000 |
0 |
|
4 |
34,000 |
4,000 |
|
6 |
28,000 |
8,000 |
|
8 |
24,000 |
16,000 |
|
10 |
20,000 |
20,000 |
|
12 |
18,000 |
28,000 |
|
14 |
12,000 |
36,000 |
|
16 |
6,000 |
40,000 |
Draw and label a graph representing this market (
In economics, the quantity is taken on the x-axis and the price is taken on the y-axis.
So the demand curve represents the quantity demanded at different price levels similar supply curve represents the quantity supplied at different price levels. At the market equilibrium price, the supply and demand curve interests, and the intersection point is known as the equilibrium point.
The price floor is the legal minimum price at which consumers buy the goods.
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