Refer to Example 2.5 (page 61 ) on the market for wheat. In 1998 , the total demand for U.S. wheat was $Q=3244-283 P$ and the domestic supply was $Q_{s}=1944+207 P .$ At the end of $1998,$ both Brazil and Indonesia opened their wheat markets to U.S. farmers. Suppose that these new markets add $200 \mathrm{mil}$ lion bushels to U.S. wheat demand. What will be the free-market price of wheat and what quantity will be produced and sold by U.S. farmers?
Added by Christopher H.
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S. wheat after adding 200 million bushels: $Q_{\text{new}} = 3244 - 283P + 200$ Show more…
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