With each price increase of 20, quantity supplied increases by 2. Therefore, ∆ ... If Brazil and Indonesia add an additional 200 million bushels of wheat to wheat demand, the new demand curve Q′D, would be equal to Q D + 200, or Q′D = (3244 283P) + 200 = 3444 283P. Equating supply and the new demand, we may determine the new equilibrium price, 1944 + 207P = 3444 283P, or ...
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Central Brazil has, for generations, been considered to be unsuitable for farming. However, this area (partly known as cerrados) is now booming, being used extensively for mechanised crop agriculture. Vast expanses of this land are still to be developed, being used only in pasture, but having the potential to produce excellent farming and exporting crops.
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