Agriculture Reference
In-Depth Information
$40.00
S
$37.50
$35.00
$32.50
P
1
$30.00
$27.50
$25.00
$22.50
D
$20.00
$17.50
$15.00
$12.50
$10.00
0
5
10
15
20
25
Q
1
30
35
40
Quantity of cereal
(000 cases)
Figure 3.1
Supply and demand of cereal
$40.00
Surplus
S
$37.50
$35.00
P
2
A
$32.50
P
1
$30.00
B
$27.50
C
P
3
$25.00
$22.50
Shortage
D
$20.00
$17.50
$15.00
$12.50
$10.00
0
5
10
15
20
25
30
35
40
Q
3
Q
1
Q
2
Quantity of cereal
(000 cases)
Figure 3.2
Shortages and surpluses with supply and demand
