Suppose the Market for Corn Is Given by the Following

Suppose the market for corn is given by the following equations for supply and demand:
Q_S = 2p − 2
Q_D = 13 − p
where Q is the quantity in millions of bushels per year and p is the price.
a.Calculate the equilibrium price and quantity.Sketch the supply and demand curves on a graph indicating the equilibrium.
b.If a price floor is imposed at $7 per bushel,will there be a surplus or a shortage? What is the quantity of excess supply or demand that results? Draw a graph to show this.

Correct Answer:

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a.2p - 2 = 13 - p p* = 5 Q* = ...

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