Suppose the Market for Corn Is Given by the Following

question 136

Essay

Suppose the market for corn is given by the following equations for supply and demand:
QS = 2p − 2
QD = 13 − p
where Q is the quantity in millions of bushels per year and p is the price.
a.Calculate the equilibrium price and quantity.Sketch the supply and demand curves on a graph indicating the equilibrium.
b.If a price floor is imposed at $7 per bushel,will there be a surplus or a shortage? What is the quantity of excess supply or demand that results? Draw a graph to show this.

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Definitions:

Ecological Intelligence Hypothesis

A theory suggesting that the complex social behaviors and cognitive abilities of organisms, especially humans, evolved as a response to ecological challenges and opportunities.

Social Intelligence Hypothesis

The theory that complex social behavior in animals, including humans, evolved to solve challenges in social environments.

Cognitive

Relating to the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Brain to Body Size Ratio

A comparative measure of brain size relative to body size, which is often used as an indicator of the intelligence of an animal.