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AP® Microeconomics

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Moderate

Equilibrium Price and Quantity: Change Determined from Table

APMICR-IFQKNQ

The market for wheat is initially in equilibrium at \$20 a bushel based on the table below. If a government subsidy increases the amount of wheat produced by 150 bushels at each price level, what will be the new equilibrium price and output in the market?

Quantity demanded Price Quantity supplied
500 \$5 100
450 \$10 200
400 \$15 250
300 \$20 300
250 $25 400
A

$5 and 500

B

$10 and 450

C

$15 and 400

D

$20 and 450

E

$25 and 250