Posted by **ericca porch** on Tuesday, September 12, 2006 at 10:54am.

assume that the demand and supplu equations for bushels of wheat are as follows

Qd=15-(3*P)

Qs=1+(4*P)

Also assume that, the equilibrium, Qd=Qs solve for equilibrium price by setting quanity demand equal to quanity supplied. what is the disequilibrim condition at prices of $150. $2.50.

I am having problems with this problem, please help

thank you

set 15-3P=1+4P. Solve for P (using algebra).

Plug in 1.5 for P in the supply and demand equations, What is Qd, what is Qs. Is there a surplus or shortage (hint: a shortage as quantity demanded exceeds quantity supplied). Repeat with 2.5 for P.