1. The table below shows the quantity demanded and quantity supplied of wheat at various prices. Price Quantity Demanded Quantity Supplied 0.5 06 80 30 1 50 1.5 70 70 2 60 90 2.5 50 110 a) What is the equilibrium price and quantity in this market? How can you tell?| b) If the price in the market is $0.5, is there an excess demand or an excess supply? How large is the excess demand or excess supply? Show all your work. Show this situation on a graph.

1. The table below shows the quantity demanded and quantity supplied of wheat at various prices. Price Quantity Demanded Quantity Supplied 0.5 06 80 30 1 50 1.5 70 70 2 60 90 2.5 50 110 a) What is the equilibrium price and quantity in this market? How can you tell?| b) If the price in the market is $0.5, is there an excess demand or an excess supply? How large is the excess demand or excess supply? Show all your work. Show this situation on a graph.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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