Suppose a hypothetical economy produces two goods i-e wheat and rice.
A. Draw the demand curve for wheat.
B. Draw the supply curve of wheat.
C. Determine the equilibrium in the wheat market with the help of graphs.
D. If there is an increase in the price of rice, what will be its impact on the market equilibrium? Show graphically.
E. If government imposes tax on wheat production, what will be its impact on market equilibrium? Show graphically.