## Supply and demand

Problems 1–4 are based on the following demand and supply schedules for corn (all quantities are in millions of bushels per year).Price per bushel Quantity demanded Quantity supplied\$0 6 01 5 12 4 23 3 34 2 45 1 56 0 61. Draw the demand and supply curves for corn. What is the equilibrium price? The equilibrium quantity?

2. Suppose the government now imposes a price floor at \$4 per bushel. Show the effect of this program graphically. How large is the surplus of corn?
3. With the price floor, how much do farmers receive for their corn? (How much do they receive overall—quantity x price)? How much would they have received if there were no price floor?
4. If the government wishes to buy all the surplus corn, how much will it need to spend? Problems 5–10 are based on the following hypothetical demand and supply curves for apartmentsRent/Month Number of Apts. Demanded/Month Number of Apts. Supplied/Month\$0 120,000 0200 100,000 20,000400 80,000 40,000600 60,000 60,000800 40,000 80,0001000 20,000 100,0001200 0 120,0005. Sketch the demand and supply curves for apartments.

6. What is the equilibrium rent per month? At this rent, what is the number of apartments demanded and supplied per month?
7. Suppose a ceiling on rents is set at \$400 per month. Characterize the situation that results from this policy.
8. At the rent ceiling, how many apartments are demanded? How many are supplied?
9. How much are people willing to pay for the number of apartments supplied at the ceiling? (i.e., at the quantity supplied in #8 above, what is the highest price that consumers are willing to pay?) Describe the arrangements to which this situation might lead.
10. Given that rent controls can actually hurt low-income people, devise a housing strategy that would provide affordable housing for those whose incomes fall below the poverty line (in 2016, this was about \$24,000 for a family of four).
QUESTION  11. 1a. From the table that provides the supply and demand for corn, What is the equilibrium price?
QUESTION 21. 1b. From the table that provides the supply and demand for corn, What is the equilibrium quantity?
QUESTION 31. 2.    Suppose the government now imposes a price floor at \$4 per bushel. How large is the surplus of corn?
QUESTION 41. 3a and #4.    With the price floor, and assuming the government buys all the surplus, how much do farmers receive for their corn? (How much do they receive overall—quantity x price, from both private citizens buying and the government buying)?
QUESTION 51. 3b. How much would they have received if there were no price floor?
QUESTION 61.
4.    If the government buys all the surplus corn, how much will it spend?

QUESTION 71. 6a.    What is the equilibrium rent per month?

QUESTION 81.
6b. At this rent, what is the number of apartments demanded and supplied per month?

QUESTION 91. 8a.    At the rent ceiling, how many apartments are demanded?

QUESTION 101. 8b.    At the rent ceiling, how many apartments are supplied?