Answer the question on the basis of the given supply and demand data for wheat:
A. Refer to the data. If the price in this market was $4:
1. farmers would not be able to sell all their wheat.
2. buyers would want to purchase more wheat than is currently being supplied.
3. the market would clear; quantity demanded would equal quantity supplied.
4. there would be a shortage of wheat.
B. Equilibrium price will be
1. $4
2. $3
3. $2
4. $1
Answer the question on the basis of the given supply and demand data for wheat:
A. Refer to the data. If the price in this market was $4:
1. farmers would not be able to sell all their wheat.
2. buyers would want to purchase more wheat than is currently being supplied.
3. the market would clear; quantity demanded would equal quantity supplied.
4. there would be a shortage of wheat.
B. Equilibrium price will be
1. $4
2. $3
3. $2
4. $1
Related textbook solutions
Related questions
1. Assume the equilibrium price of product Z is $10. A decrease in the current price from $14 to $12 will cause an increase in the quantity:
A. Supplied, a decrease in the quantity demanded, and a decrease in the market surplus.
B. Supplied, a decrease in the quantity demanded, and a decrease in the market shortage.
C. Demanded, a decrease in the quantity supplied, and a decrease in the market surplus.
D. Demanded, a decrease in the quantity supplied, and the market shortage is eliminated.
E. Demanded, a decrease in the quantity supplied, and a decrease in the market shortage.
| 2. The Wall Street Journal (newspaper) of August 24, 2016, reported that the Chinese government recently increased the demand for wheat. When an economist says the demand for wheat has increased, she means that: | |||||||||||||||||
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Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the table below.
| Thousands of Bushels Demanded | Price per Bushel | Thousands of Bushels Supplied |
| 85 | $3.40 | 72 |
| 80 | 3.70 | 73 |
| 75 | 4.00 | 75 |
| 70 | 4.30 | 77 |
| 65 | 4.60 | 79 |
| 60 | 4.90 | 81 |
Suppose that the government establishes a price ceiling of $3.70 for wheat.
1. Why might the government establish this price ceiling?
A. To encourage production
B. To control food prices
C. As a form of trade barrier
D. As income support for farmers
2. In a diagram, draw this price selling established at $3.70
3. Next, suppose that the government establishes a price floor of $4.60 for wheat. What will be the main effect of this price floor?
A. It will eliminate the market for wheat
B. It will create a shortage
C. It will create a surplus
D. It will establish equilibrium quantity
