Draw the supply and demand curves on the graph provided. Make sure to label each curve.b. Indicate...

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Draw the supply and demand curves on the graph provided. Make sure to label each curve.b. Indicate the initial equilibrium with a closed circle ‘?’ and a solid line ‘––’ connecting the closed circle to each axis.c. The initial equilibrium price is $______ per bushel and ________ billions of bushels of wheat.d. Calculate the consumer surplus (CS) at the initial equilibrium.e. Calculate the producer surplus (PS) at the initial equilibrium.f. Calculate the total surplus (TS) at the initial equilibrium
	
Document Preview: 1.	The market for wheat is shown belowPrice ($ per bushel)Quantity supplied (billions)Quantity demanded (billions)0.000900.500851.000801.500752.0010702.5020653.0030603.5040554.0050504.5060455.0070405.5080356.0090306.50100257.00110207.50120158.00130108.5014059.001500a.	Draw the supply and demand curves on the graph provided.  Make sure to label each curve.b.	Indicate the initial equilibrium with a closed circle ‘?’ and a solid line ‘––’ connecting the closed circle to each axis.c.	The initial equilibrium price is $______ per bushel and ________ billions of bushels of wheat.d.	Calculate the consumer surplus (CS) at the initial equilibrium.e.	Calculate the producer surplus (PS) at the initial equilibrium.f.	Calculate the total surplus (TS) at the initial equilibrium.2.	The recent rise in the price of corn has led many consumers of corn to substitute into wheat.   As a result, the willingness to pay for wheat has increased by $3.00 a.	On the graph above, show the impact a $3.00 increse in the willingness to pay on the supply and demand curves for wheat.  You will have to draw the original supply and demand curves.b.	Indicate the new equilibrium with an open circle ‘?’ and a dashed line ‘---’ connecting the closed circle to each axis.	c.	The new equilibrium price is $______ per bushel and ________ billions of bushels of wheat.d.	Calculate the consumer surplus (CS) at the new equilibrium.e.	Calculate the producer surplus (PS) at the new equilibrium.f.	Calculate the total surplus (TS) at the new equilibrium.2.	Suppose instead that farmers are able to rip up their dying corn crop and replace it with wheat.  As a result, the marginal cost of wheat will decrease by $1.50.   a.	On the graph above, show the impact a $1.50 decrese in the marginal cost on the supply and demand curves for wheat.  You will have to draw the original supply and demand curves.b.	Indicate the new...

David · Accepted Answer

National Accounts
Name: _______________________________​​​​​_____ 
Homework #1 (due Thursday, 2/21)
Name: _______________________________​​​​​_________ 
Homework #1 (due Tuesday, 9/11)
1.
The market for wheat is shown below
	Price ($ per bushel)
	Quantity supplied (billions)
	Quantity demanded (billions)
	0.00
	0
	90
	0.50
	0
	85
	1.00
	0
	80
	1.50
	0
	75
	2.00
	10
	70
	2.50
	20
	65
	3.00
	30
	60
	3.50
	40
	55
	4.00
	50
	50
	4.50
	60
	45
	5.00
	70
	40
	5.50
	80
	35
	6.

Draw the supply and demand curves on the graph provided. Make sure to label each curve. b. Indicate the initial equilibrium with a closed circle ‘ ? ’ and a solid line ‘ –– ’ connecting the closed...

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