3- Table 2 Price per bushelQuantity Demanded(bushels)Quantity Supplied (bushels)US$240,0000436,0004,000630,0008,000824,00016,0001020,00020,0001218,00028,0001412,00036,000166,00040,000 3- Refer to Table 2. The table contains information about the wheat market. Use the table to answer the following questions.What are the equilibrium price and quantity of wheat?Suppose the prevailing price is US$6 per bushel. Is there a shortage or a surplus in the market?What is the quantity of the shortage or surplus?How many bushels will be sold if the market price is US$6 per bushel?If the market price is US$6 per bushel, what must happen to restore equilibrium in the market?At what price will suppliers be able to sell 36,000 bushels of wheat?Suppose the market price is US$14 per bushel. Is there a shortage or a surplus in the market?What is the quantity of the shortage or surplus?How many bushels will be sold if the market price is US$14 per bushel?If the market price is US$14 per bushel, what must happen to restore equilibrium in the market?

As we answer 3 subparts only and the question has more than 3 subparts, we would answer the first…

Answered: 3- Table 2 Price…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 3PA

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3- Table 2

Price per bushel	Quantity Demanded (bushels)	Quantity Supplied (bushels)
US$2	40,000	0
4	36,000	4,000
6	30,000	8,000
8	24,000	16,000
10	20,000	20,000
12	18,000	28,000
14	12,000	36,000
16	6,000	40,000

3- Refer to Table 2. The table contains information about the wheat market. Use the table to answer the following questions.

What are the equilibrium price and quantity of wheat?
Suppose the prevailing price is US$6 per bushel. Is there a shortage or a surplus in the market?
What is the quantity of the shortage or surplus?
How many bushels will be sold if the market price is US$6 per bushel?
If the market price is US$6 per bushel, what must happen to restore equilibrium in the market?
At what price will suppliers be able to sell 36,000 bushels of wheat?
Suppose the market price is US$14 per bushel. Is there a shortage or a surplus in the market?
What is the quantity of the shortage or surplus?
How many bushels will be sold if the market price is US$14 per bushel?
If the market price is US$14 per bushel, what must happen to restore equilibrium in the market?

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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