Question

At $0.36 per bushel, the daily supply for wheat is 372 bushels, and the daily demand is 592 bushels. When the price is raised to $0.75 per bushel, the daily supply increases to 502 bushels, and the daily demand decreases to 397 bushels. Assume that the price-supply and price-demand equations are linear. a. Find the price-supply equation. DE (Type an expression using q as the variable. Round to three decimal places as needed.) b. Find the price-demand equation. pa (Type an expression using q as the variable. Round to three decimal places as needed.) c. Find the equilibrium price and equilibrium quantity. price = sa (Round to the nearest cent as needed.) quantity = bushels (Round to the nearest bushel as needed.) d. Graph the two equations in the same coordinate system and identify the equilibrium point E, supply curve S, and demand curve D. Select the correct araph below.

Answer 1

p=price, q = quantity. as for price-supply two coordinates are (p, q) = (0136,372) and (0.75,502 ) sol 502 - 372 IT q- 502 P-0.75 0.75 -0.36 q- 502 130 p-0.75 0.39 p-o.75= 0.39 (q - 502 ) 13o p-0-75 = 0.003q -1.506 p = 0'00 39 -0.756 b) for police -demand , (piq) = (0.36,592) and (0.75,397) q-592 592 - 397 P-0.36 0.36 -0.75 q - 592 195 > P-0.36 = -0.39 (9-592) P-0.36 195 p= -0'00. 2q + 1.184 +0.36 P= -0.002q + 1-544 0.39

() To find equilibrium point, set the two prices equal 0.0037 - 0.0756 -0.002q + 1.544 0:0059 2:3 q=460 And, P = 0·003 x ubo -0.756 0 624 ñ $ 1