Macroeconomics 9th Edition by David Colander

تمرين 47

Suppose the demand and supply for wheat are described by the following equations: Q D = 10 - P ; Q s =2 + P, where P is the price in dollars, Q D is quantity demanded in millions of bushels per year, and Q s is quantity supplied in millions of bushels per year.
a. Solve for equilibrium price and quantity of wheat.
b. Would a government-set priceof$5 create a surplus or a shortage of wheat How much Is $85 a price ceiling or a price floor