Question

Graphically show and explain the effect of the shift of either demand or supply curve or the shift of both on the market equilibrium price and quantity for each of the following events.
In Swaziland, farmers can either plant corn or wheat on their land. Both the wheat and the corn markets in Swaziland are initially in equilibrium. The price of corn increases, what happens in the market for wheat?

Answer 1

Answer on Question # 71353, Economics / Microeconomics

Consequently, with the increase in the price of maize, the demand for corn decreases, and in turn the demand for wheat increases, which contributes to an increase in the supply of wheat. Therefore, wheat prices will decrease, and the quantity will increase.

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