Purchase Solution

Use of supply and demand to determine surplus

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Demand and Supply curves.

The following relations describe demand and supply conditions in the wheat industry:
Qd=5,500-1,000P (demand)
Qs=-4,500+1,500P (supply)
Where Q is quantity measured in millions of bushels and P is the price in dollars.
Complete the following table:

Price Quantity Supplied Quantity Demanded Surplus (+) or Shortage (-)
(1) (2) (3) (4)=(2)-(3)
______________________________________________________________________
\$4.50
4.25
4.00
3.75
3.50

Solution Summary

This posting helps with an economic development problem. The solution helps with various problems involving supply and demand. Calculations are given.

Solution Preview

Background: The following relations describe demand and supply conditions in the wheat industry:
Qd=5,500-1,000P (demand)
Qs=-4,500+1,500P (supply)
Where Q is quantity measured in millions of bushels and P is the ...

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