Answer the Question on the Basis of the Given Supply

question 77

Multiple Choice

Answer the question on the basis of the given supply and demand data for wheat: $\begin{array} { c c c } \text { Bushels Demanded }&&\text { Bushels Supplied Per }\\\text { Per Month } & \text { Price Per Bushel } & \text { Month } \\ \hline45 & \$ 5 & 77 \\ 50 & 4 & 73 \\ 56 & 3 & 68 \\ 61 & 2 & 61 \\ 67 & 1 & 57 \end{array}$ Refer to the data.If price was initially $4 and free to fluctuate,we would expect the:

• A) quantity supplied to continue to exceed the quantity demanded.
• B) quantity of wheat supplied to decline as a result of the subsequent price change.
• C) quantity of wheat demanded to fall as a result of the subsequent price change.
• D) price of wheat to rise.

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Definitions:

Demand for Labor

The aggregate number of employees that employers intend and can employ at a particular rate of wages over a certain interval.

Total Product Schedule

A table or graph that shows the output produced by a firm with different quantities of variable input, holding all other inputs constant.

Market Wage Rate

The prevailing rate of pay for given types of labor in the market, determined by supply and demand.

Product Price

The amount of money required to purchase a good or service, often influenced by cost of production, competition, and demand factors.