Please help with the required steps for this problem. If the demand curve for wh
ID: 1176331 • Letter: P
Question
Please help with the required steps for this problem. If the demand curve for wheat in the United States is: P=12.4 -Qd where P is the farm price of wheat (in dollars per bushel) and Qd is the quantity of wheat demanded (in billions of bushels), and the supply curve for wheat in the US is: P= -2.6 +2Qs where Qs is the quantity of wheat supplied (in billions of bushels), what is the equilibrium price of wheat? What is the equilibrium quantity of wheat sold? Must the actual price equal the equilibrium price? Why or why not?Explanation / Answer
Qd=12.4-P
Qs=(P+2.6)/2
Qs=Qd
12.4-P=(P+2.6)/2
P=$7.4
Qs=5 billions of bushels
no,not necessarily.it depends on the type of market we have been adopted.equlibrium price is the ideal one.but monopoly markets usually go above the equilibrium price to earn more profits