The demand for a bushel of wheat in 1981 was given by the…
The demand for a bushel of wheat in 1981 was given by the equation QD = 2700 – 200P. The supply function is: QS= 1200 + 300P. a. The equilibrium quantity is: (please round to integer) b.At the equilibrium price, the absolute value of price elasticity of supply is (please enter the absolute value, please keep two decimal places) (Hint: price elasticity of supply= (dQ/dp)*(p/Q)) c. Now the government provides $1 to the sellers for every bushel sold on the market. What will be the new equilibrium price? $ (please only enter the value, please keep two decimal places)