Suppose the Market for Corn Is Given by the Following

question 158

Essay

Suppose the market for corn is given by the following equations for supply and demand:
Q_S = 2p − 2
Q_D = 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:

Standardization

The process of implementing and developing technical standards to ensure consistent, quality processes and products.

Coordinating Mechanism

Procedures or systems used to align and manage activities and tasks across different parts of an organization or team.

Organic Structure

An organizational structure characterized by flexibility, decentralization of authority, and a broad scope of operation, allowing for quick adaptation to changes.

Mechanistic Structure

Mechanistic structure refers to a highly organized and rigid organizational form, characterized by a hierarchical and bureaucratic approach to management and operations.