Describe the equilibrium price and equilibrium quantity

Question

Assume the total demand for wheat and the net supply of wheat per month in the Kansas City grain market are as:

Describe the equilibrium price? Explain the equilibrium quantity?  Fill in the surplus-shortage column and employ it to depict why your answers are correct.

Answer 1

Pe = $4.00; Qe = 75,000.  Equilibrium takes place where there is neither a shortage nor surplus of wheat. At the instantly lower price of $3.70, there is a shortage of 7,000 bushels. At the instantly higher price of $4.30, there is a surplus of 7,000 bushels.