Consider the market for corn in the United States. We are going to use Excel...
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Consider the market for corn in the United States. We are going to use Excel to examine changes in consumer and producer surplus in a competitive market when the market is not in equilibrium. Suppose the demand and supply functions for corn are as follows.
QD = 100 - 14.5P QS =0+5.5P
Where Q is bushels of corn (in billions) and P is the market price per bushel.
Using the template provided, enter the coefficients for demand and supply. When the market isn't in equilibrium, only the minimum of QD and QS values will actually be sold.
1) What happens to consumer, producer, and total surplus as you increase the price from $3 to the equilibrium? show how the calculations for each answer
What happens to consumer, producer, and total surplus as you increase the price from $3 to the equilibrium? Start price =$3.00 What happens to consumer, producer, and total surplus as you increase the price from $3 to the equilibrium? Start price =$3.00
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