Question

Answer the question on the basis of the given supply and demand data for wheat. Bushels Demanded Per Month Price Per Bushel Bushels Supplied Per Month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 If the price in this market was $4, A. the market would clear; quantity demanded would equal quantity supplied. B. buyers would want to purchase more wheat than is currently being supplied. C. farmers would not be able to sell all their wheat. D. there would be a shortage of wheat.

Answer 1

Answer:

C. farmers would not be able to sell all their wheat. 

Explanation:

At a price of $4, quantity supplied exceeds quantity demanded. Quantity supplied is 73 while quantity demanded is 50. There is an excess supply over demand. Therefore, farmers would not be able to sell all their wheat.

Equilibrium price is $2. This is where quantity supplied equals quantity demanded.

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