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If the demand curve for wheat in the United States is P=12.4 - Q_D where is the P is the farm price of wheat (in dollars per bushel) and Q_D is the quantity of wheat demanded (in billions of bushels), and the supply curve for wheat in the United States is P= -2.6 + 2Q_S where Q_s is the quantity of wheat supplied (in billions of bushels), what is the equilibrium price of wheat? What is the equilibrium quantity of wheat sold? Must the actual price equal the equilibrium price? Why or why not?
Question 2: Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail.
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As part of the preparations for the arrival of a hurricane, NC residents sought to buy electricity generators. As a result, you expect that in NC
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