Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the table below.

Suppose that the government establishes a price ceiling of $3.70 for wheat.

What might prompt the government to establish this price ceiling?

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Joshua StredderLv10

28 Oct 2020

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Hi,

Plase help me with the problem and show work for undertanding thank you

3a. You are told the initial value of the variable, and the percentage change. For each, compute the new

value of the variable. Show your work!

Initial Value Percentage Change New Value

100 12%

50 8%

3b.Describe what will happen in the market in the following situations.. Will there be a

shortage or excess? A deadweight loss? if so, calculate the amounts.

a. the government establishes a price ceiling of $30 per bushel of wheat.

b. the government establishes a price ceiling of $10.

c. the government establishes a price floor of $30.

d. the government establishes a price floor of $10.

e. price and quantity in the market compared to the desired equilibrium? Identify an example of a price

floor.

whitewasp640

The widget industry is perfectly competitive. The industry demand and supply functions for widgets are given below.
Qd = 424 - 40P
Qs = 40 + 8P

If the government establishes a price ceiling of $6, explain what will result in terms of excess demand or supply.