At a price of $1.90 per bushel, the annual U.S. supply and demand for barley are 410 million bushels and 455 million bushels, respectively. When the price rises to $2.70 per bushel, the supply increases to 430 million bushels and the demand decreases to 415 million bushels.
A. Assuming that the price-supply and the price-demand equations are linear, find equations for each.
B. Find the equilibrium point for the U.S. barley market.© BrainMass Inc. brainmass.com March 4, 2021, 6:27 pm ad1c9bdddf
Let the x axis is the price and y axis is either supply or demand (in million).
When price is 1.9, supply is 410 million. When price is 2.7, supply is 430 million.
=> A straight ...
The solution shows how to find the equilibrium point using price-supply and price-demand equations.