Refer to Table 3-5. The table contains information about the corn ...

[krzymel]

Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions.
 
  a. What are the equilibrium price and quantity of corn?
  b. Suppose the prevailing price is 9 per bushel. Is there a shortage or a surplus in the market?
  c. What is the quantity of the shortage or surplus?
  d. How many bushels will be sold if the market price is 9 per bushel?
  e. If the market price is 9 per bushel, what must happen to restore equilibrium in the market?
  f. At what price will suppliers be able to sell 24,000 bushels of corn?
  g. Suppose the market price is 21 per bushel. Is there a shortage or a surplus in the market?
  h. What is the quantity of the shortage or surplus?
  i. How many bushels will be sold if the market price is 21 per bushel?
  j. If the market price is 21 per bushel, what must happen to restore equilibrium in the market?

Question 2

Refer to Table 6-8. What is the numerical value of the price elasticity of supply?
 
  A) 0 B) 1
  C) greater than 0 but less than 1 D) greater than 1

[chereeb]

Answer to Question 1

a. Equilibrium price = 15; Equilibrium quantity = 15,000 bushels.
b. There is a shortage.
c. Shortage = 24,000 - 6,000 = 18,000 bushels.
d. Quantity sold = 6,000 bushels.
e. Price must rise.
f. At 9 per bushel.
g. There is a surplus.
h. Surplus = 28,000 - 7,000 = 21,000 bushels.
i. Quantity sold = 7,000 bushels.
j. Price must fall.

Answer to Question 2

A