Consider a competitive market for wheat in a village in which the production and consumption of wheat have no external effects. The daily market demand for wheat is given the equation WTP = 32 − Q, where quantity (Q) of wheat is measured in bushels per day and consumers’ willingness-to-pay (WTP) is measured in dollars per bushel. The market supply of wheat is given by the equation WTA = 10 + Q, where producers’ willingness-to-accept (WTA) is measured in dollars per bushel.

How do you find the equilibrium price and quantity?

Group of answer choices

(a) The equilibrium occurs where WTP is equal to WTA .

(b) The equilibrium occurs where WTP is above WTA.

(c) The equilibrium occurs where WTA is above WTP.

(d) There are multiple equilibria because there are many sellers in the market.

(e) There are multiple equilibria because there are many buyers in the market.