Price ($
per tonne)
Quantity Supplied
(million tonnes)Quantity Demanded
(million tonnes)280 8.5 12.5
300 9.0 11.0
320 9.5
340 10.0
360 10.5
380 11.0
a. What is the equilibrium price of potash?
b. How much potash would actually be purchased if the
price were $280 per tonne?
c. How much potash would actually be sold if the price
were $360 per tonne?
d. At a price of $280 per tonne, is there excess supply or
demand? If so, how much?
e. At a price of $360 per tonne, is there excess supply or
demand? If so, how much?