ECONOMICS - 75 70 $4.30 77-7 65 $4.60 79-14 60 $4.90 81-21...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Kemile Jones Homework 2 Page 67 question #3 a. The equilibrium price for this graph is $4.oo and that is where there is no surplus or shortage. Thousands of bushels demanded Price per bushel Thousands of bushels supplied Surplus(+) Shortage(-) 85 $3.40 72 +13 80 $3.70 73 +7 75 $4.oo
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 75 70 $4.30 77-7 65 $4.60 79-14 60 $4.90 81-21 b. c. The surplus at $3.40 is 13. The shortage at $4.90 is -21. If the price is 60 cents higher than the equilibrium price shortage is 14. If the price is 30 cents lower than the surplus is 7....
View Full Document

Ask a homework question - tutors are online