Table 3-2 -Refer to Table 3-2.The Table Contains Information About the Corn

question 90

Essay

Table 3-2

-Refer to Table 3-2.The table contains information about the corn market.Use the table to answer the following questions.
a.What are the equilibrium price and quantity of corn?
b.Suppose the prevailing price is $9 per bushel.Is there a shortage or a surplus in the market?
c.What is the quantity of the shortage or surplus?
d.How many bushels will be sold if the market price is $9 per bushel?
e.If the market price is $9 per bushel,what must happen to restore equilibrium in the market?
f.At what price will suppliers be able to sell 22,000 bushels of corn?
g.Suppose the market price is $21 per bushel.Is there a shortage or a surplus in the market?
h.What is the quantity of the shortage or surplus?
i.How many bushels will be sold if the market price is $21 per bushel?
j.If the market price is $21 per bushel,what must happen to restore equilibrium in the market?

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Definitions:

Quantity Effect

The change in the total amount consumed or produced of a good or service resulting from a change in its market price.

Entrance Fee

A charge for admission, often paid at the entrance of a facility, event, or establishment.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in its price; it quantifies the sensitivity of demand relative to price changes.

Percent Change

A mathematical calculation that describes the degree of change over time, expressed as a percentage.