If there is Savings in this Circular model, then what would eventually happen to income and revenue?

/in /by

If there is Savings in this Circular model, then what would eventually
happen to income and revenue?

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the supply and demand functions for maize farmers are given as Qs=32+10q and Qd=40-2p respectively where Qs is quantity supplied in bags, Qd is quantity demanded in bags and Pis the price per bag dollars. 1. Determine the new equilibrium price and quantity of maize. 2. As a result of introduction of a new technology in maize farming, the supply function for maize changes to become Qs=-20+2p. Demand remain unchanged. i) Determine the new equilibrium and quantity ii) Derive the supply and demand table for maize before and after the introduction of new technology for price ranges 3,4,5,6,7 and 8. 3. Suppose government intervenes in the maize market and fixes a minimum price of 8 dollars per bag after the introduction of new technology. i) What happens in the maize market? ii) Give two (2) measures that the government can take to deal with the situation created by the minimum price in (c) i. above.
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