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Unformatted text preview: ntity equals 8.0 billion bushels plus 5.6 billion bushels e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie w 3/9 1/14/14 Assignme nt Pr int Vie w purchased by the government.
Alternatively, the government purchase of 5.6 billion bushels of corn can be seen as an outward shift in
demand by 5.6. This will result in a new demand function: Qd = 18.5 2P. Note that the new equilibrium price
and quantity will still be $3.5/bushel and 11.5 billion bushels of corn including the 3.5 billion bushels
purchased by the government. 5. awar d: 16.66 out of
16.66 points Suppose the demand function for jelly beans in Cincinnati is linear. Two years ago, the price of jelly beans was
$1.75 per pound, and consumers purchased 103,000 pounds of jelly beans. Last year the price was $3.00,
and consumers purchased 53,000 pounds of jelly beans. No other factors that might affect the demand for jelly
a. What was the elasticity of demand at last year’s price of $3.00? Instr...
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- Fall '13