Suppose that lower production costs increases the supply of wheat, such that more wheat is supplied at each price level. the new equilibrium quantity (after the increase in supply) is

a)600
b)800

Economic theory tells us that in an open market with perfect capital mobility, the equilibrium price is given by the interaction between supply and demand for a good. This point of equilibrium occurs when the supply and demand curves intersect.

In the exercise, initially the supply and demand curves intersect where the price is $ 4 and the quantity demanded is 600. If the cost of production has decreased, the producer can lower the price. If price decreases, demand usually increases, creating a new break-even point. In the case, the price has decreased to $ 3 and demand has increased to 800, which is our answer.

the first settlements began along the huang river because of the importance of the huang river in the beginning of china. it goes back to the story, “the tale of emperor yu”, which references the tale of the great flood, which was caused by the huang river and was believed to create and influence china’s making.

what is the other part to the question