Right Panel: The market: a shift of short-run supply in response to an increase in demand.
-Refer to the diagrams above.If the market demand for wheat and the market supply of wheat are represented by D' and SRS,respectively,the market price is____ per bushel and the quantity produced by the market is__________ bushels of wheat per year.
A) $1.20;12 million
B) $1.20;12 thousand
C) $1.12;12 thousand
D) $1.12;14 million
E) $1.20;10 million

Question

Right Panel: The market: a shift of short-run supply in response to an increase in demand. 
-Refer to the diagrams above.If the market demand for wheat and the market supply of wheat are represented by D' and SRS,respectively,the market price is____ per bushel and the quantity produced by the market is__________ bushels of wheat per year.
A) $1.20;12 million 
B) $1.20;12 thousand 
C) $1.12;12 thousand 
D) $1.12;14 million 
E) $1.20;10 million

Quizplus · Accepted Answer

The market price is determined where the demand curve D' intersects the supply curve SRS. The intersection point indicates a price of $1.20 and a quantity of 12 million bushels.

Right Panel: the Market: a Shift of Short-Run Supply in Response