Calculate the amount of surplus-shortage

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The data in the following table represents Canadian wheat market where, Qd and Qs are the quantity of wheat demanded and supplied in bushels per week respectively, and P is the price of wheat in dollars per bushel.

                Price                Qd                 Qs      Surplus/Shortage   

                 10                   3,000              8,000              ---------                        

                 9                     3,500              7,000              ----------

                 8                     4,000              5,500              ----------

                 7                     4,500              4,500              ---------

               6                     5,000              3,500              ----------

Calculate the amount of surplus/shortage if the current market price is $8 per bushel. Analyze its impact on market price and quantity.

Reference no: EM132482322

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