What will happen to equilibrium price nd equilibrium quatity

Reference no: EM13222526

Illustrate the following situation by using supply and demand curve.

a. The federal government "supports" the price of wheat by paying farmers not to plant wheat on some of their land. What will happen to the equilibrium price and the equilibrium quantity?

b. Both income and crude oil prices increase. What will happen to the equilibrium price and the equilibrium quantity in the gasoline market?

Reference no: EM13222526

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