The demand and supply schedules for a hypothetical Canadian market for barley are given below: TABLE 3-3 Refer to Table 3-3.If the price in this market was $200 per tonne,then the amount of barley actually purchased would be ________ million tonnes.

Question

The demand and supply schedules for a hypothetical Canadian market for barley are given below:  TABLE 3-3 Refer to Table 3-3.If the price in this market was $200 per tonne,then the amount of barley actually purchased would be ________ million tonnes.

Quizplus · Accepted Answer

At a price of $200 per tonne, the quantity demanded is 400 million tonnes and the quantity supplied is 70 million tonnes. Since the quantity demanded exceeds the quantity supplied, the actual amount of barley purchased would be limited by the supply, which is 70 million tonnes.

The Demand and Supply Schedules for a Hypothetical Canadian Market