Purchase Solution

Use of supply and demand to determine surplus

Not what you're looking for?

Ask Custom Question

Please help with the following economic development problem.

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

Purchase this Solution
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 ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Supply and Demand Functions and Equilibrium

    89731 Supply and Demand Functions and Equilibrium For the demand function d(x)=12.48-.005x^2 and the supply function s(x)= square root of x a) Determine the equilibrium point.

  • equilibrium price/output solution

    Use the graph to help you algebraically determine the amount of consumer and producer surplus with rent control.

  • estimates of demand and supply

    Thus, there is a reduction in the consumer surplus & the loss of consumer surplus is shown by the shaded portion in the above figure. Use estimates of demand and supply.

  • Supply and demand analysis

    278106 Supply and demand analysis Use supply and demand analysis to explain why the equilibrium price of apples will rise and the equilibrium quantity will fall if an excise tax is levied on apples.

  • Producer surplus

    If there is an increase in demand, total surplus will increase. Moving the demand curve outward increases the area between the demand and supply curves. If there is a decrease in supply, total surplus will decrease. You're right.

  • consumer surplus

    Based on your arguments, you are given the go-ahead to conduct a formal analysis, and obtain the following estimates of demand and supply: Qd=500-5P and Qs=2P-60 . a. Graph the supply and demand curves. b.

  • Fixed and Floating Exchange Rate System

    When U supply Qs quantifies then to buy these quantities of goods country W needs Country U's currency and due to this the demand for country U's currency arise.

  • Supply & Demand - Equilibrium Quantity & Price

    b) Determine the quantity demanded, the quantity supplied, and the magnitude of surplus if a price floor of $42 is imposed in this market.

  • Wheat Market Consumer Surplus Calculation

    A) Determine consumer surplus at the equilibrium price and quantity. B) Assume the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply.

View More Related Solutions