Author Question: Suppose the market price of corn is 5.50 per bushel. What are the three conditions that will need to ... (Read 76 times)

luvbio · **on:** Jun 29, 2018

Suppose the market price of corn is 5.50 per bushel. What are the three conditions that will need to be satisfied for the corn market to be in equilibrium at this price?

What will be an ideal response?

Question 2

As was demonstrated in 2007, firms in the shadow banking system

A) were very vulnerable to bank runs.
B) were protected from financial ruin by federal deposit insurance.
C) were more insulated from the financial crisis than were commercial banks.
D) were well insulated from bank runs.

debra928 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

For the market to be in equilibrium, three conditions will need to be satisfied.
At the price of 5.50 per bushel, the amount of corn produced by sellers should be equal to the amount of corn purchased by buyers in the market.
Farmers have chosen the optimal quantity of corn to produce given the price of 5.50 per bushel.
Consumers have chosen the optimal quantity of corn to buy given the price of 5.50 per bushel.

Answer to Question 2

A