The Market for Wheat Is Characterized by = 21

question 33

Multiple Choice

The market for wheat is characterized by = 21 - 2P_w + P_c and = P_w, where Q_w is the quantity of wheat in millions of bushels, P_w is the price per bushel of wheat, and P_c is the price per bushel of corn. The market for corn is characterized by = 21 - 2P_c + P_w and = P_c, where is the quantity of corn in millions of bushels. In general equilibrium, what are the prices of wheat and corn?

• A) P_w = $12; P_c = $12
• B) P_w = $6.50; P_c = $9.50
• C) P_w = $9.50; P_c = $6.50
• D) P_w = $10.50; P_c = $10.50

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Definitions:

Percentage of Sales

A financial ratio that compares a particular expense or cost to the total sales revenue, often used to analyze cost behavior or performance.

Note Duration

The total length of time until a note payable or receivable matures and is to be repaid or collected.

Rate of Interest

The percentage of principal charged by the lender for the use of its money.

Principal Amount

The initial size of a loan or an investment, excluding any interest or profit that has been added over time.