The demand and supply schedules for a hypothetical Canadian market for barley are given below: TABLE 3-3 Refer to Table 3-3.At a price of $200 per tonne there would be an excess ________ million tonnes of barley.

Question

The demand and supply schedules for a hypothetical Canadian market for barley are given below:  TABLE 3-3 Refer to Table 3-3.At a price of $200 per tonne there would be an excess ________ million tonnes of barley.

Quizplus · Accepted Answer

At a price of $200 per tonne, the quantity demanded of barley is 500 million tonnes (from the demand schedule) and the quantity supplied is 570 million tonnes (from the supply schedule). So, there is a surplus or excess supply of 70 million tonnes (570 - 500 = 70). Therefore, the correct answer is E, supply of 70.

The Demand and Supply Schedules for a Hypothetical Canadian Market