и д и f i t s . s ОмВшЫЬгМм! Wheat is an important agricultural commod-* .
itv. and llie wheat market has been studied j
extensively by agricultural economists. J
During the i$80N and !99ftsr changes m I he
wheal m.trkt-fc had m ap? implications for both :
A m erican farm ers an d U.S. *£rioutturikl poU '
icy. To u n d e rsta n d w hat hap p en ed , U’s's
examine the behavior of supply and demand J
over this period.
FtOffl kiatisttca] studies, we know that for l^fll the supply curve tar wheat (
was approximately
a» follows;7
Supply; Q , * 1S0O
+ 2Ф&Р where price is measured in nominal dollars per bushel and фшпййез in millions I
erf bushels per year. These studies also indicate that in 19Ш, the demand curve
lor wheat was
Qj *
~ 3550
-
2
Ш> By setting th e quantity supplied equal to she quantity dem anded, we can deiei- j
m ine ihe m arketQs = Qi> 1800 +
imp ~ 3550 -
266 P 30
ЬР * 1750
P *
p er bushel
To find the
т л иSct4-dearmg quantity, substitute this p»ce
Ы $3,46 infcc* either the
supply curve equation or the demand curve equation. Substituting into the sup
ply curve equation,, we get
Q = UIQQ + ОФВКЗЛб) = 2630 million bushels
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