This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose that the supply and demand of wheat depend on the price of wheat (p), the amount of annual ... (Read 196 times)

pane00

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
Suppose that the supply and demand of wheat depend on the price of wheat (p), the amount of annual rainfall (r), and the level of disposable consumer income (I).
 
  The equations describing the supply and demand curves are given by: QS = 20r + 100p QD = 4000 - 100p + 10I Sketch a graph of the supply and demand curves for wheat and show the effects of an increase in the quantity of rainfall. How does each curve shift (if at all) from the increase in rainfall? What does this shift do to the equilibrium price and quantity (increase/decrease)?

Question 2

If inflation turns out to be higher than was anticipated,
 
  A) debtors are helped.
  B) debtors are hurt.
  C) debtors are neither helped nor hurt.
  D) the effect on debtors cannot be predicted.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zoeyesther

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jul 1, 2018
Answer to Question 1

An increase in rainfall will shift the supply curve to the right (increase in supply). A change in rainfall does not change the demand curve (r does not appear in the equation). This will increase the equilibrium quantity and decrease the equilibrium price.

Answer to Question 2

A


pane00

  • Member
  • Posts: 579
Reply 2 on: Jul 1, 2018
Wow, this really help

Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

During their annual migration, the entire population of Arctic terns move from the Arctic Ocean in t During their annual migration, the entire population of Arctic terns move from the Arctic Ocean in t
Evaluation of a child for cystic fibrosis with a sweat chloride test. Sweat is being collected under Evaluation of a child for cystic fibrosis with a sweat chloride test. Sweat is being collected under
A drug’s bioavailability will depend on the dosage form and how much will actual A drug’s bioavailability will depend on the dosage form and how much will actual
An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
Wheat Plant Wheat Plant
a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ... a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ...
Video: Fertilization and Development

For a complete list of videos, visit our video library