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Question
Table 3-3| Price per Bushel | Quantity Demanded (bushels) | Quantity Supplied (bushels) |
| $3 | 30,000 | 0 |
| 6 | 26,000 | 4,000 |
| 9 | 22,000 | 9,000 |
| 12 | 18,000 | 12,000 |
| 15 | 15,000 | 15,000 |
| 18 | 12,000 | 22,000 |
| 21 | 8,000 | 28,000 |
| 24 | 4,000 | 36,000 |
Refer to Table 3-3. 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 22,000 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?
Answer
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