Homework Answers
Government has to purchase the excess supply
excess supply=4-2.5=1.5million
Total cost=4*1.5=$6million
Thus Government needs to spend $6million in order to make price=$4 for market
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7. Suppose the U.S. Department of Agriculture wants to support wheat price at $4/bu., which is...
The U.S. Department of Agriculture (USDA) is reviewing a proposal to pay farmers a price support...
The U.S. Department of Agriculture (USDA) is reviewing a proposal to pay farmers a price support of $3.00 per bushel for a given commodity. The market demand for the commodity is given by the equation QD = 16 – 4P, where Q is in billions of bushels. The market supply of the commodity is given by the equation QS = −2 + 2P. Rather than buying surplus production, the USDA will require that farmers only produce the quantity demanded at...
The U.S. Department of Agriculture (USDA) is reviewing a proposal to pay farmers a price support...
The U.S. Department of Agriculture (USDA) is reviewing a proposal to pay farmers a price support of $3.00 per bushel for a given commodity. The market demand for the commodity is given by the equation QD = 16 – 4P, where Q is in billions of bushels. The market supply of the commodity is given by the equation QS = −2 + 2P. Rather than buying surplus production, the USDA will require that farmers only produce the quantity demanded at...
The following are the U.S. supply and demand schedules for wheat (in millions of bushels): Price...
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The U.S. wheat market is shown in the figure below. Suppose the United States wants to...
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In recent years, the government of Pakistan has established a support price for wheat of about...
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1. Suppose that corn currently costs $4 per bushel and that wheat currently costs $3 per...
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4. Consider the product market for "Winter Wheat". If the Government has established a price floor...
4. Consider the product market for "Winter Wheat". If the Government has established a price floor and intends to purchase all surplus wheat draw the probable demand and supply curves and identify the equilibrium price and quantity demanded. (a) Determine the cost to the government to buy all the surplus wheat during a "bumper" crop year (b) An alternative program wil1 pay farmers to restrict acreage production. Explain how this alternative could result in the same price floor by shifting...
Suppose the current price in a market is below the equilibrium price. Af the current price...
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At the current price, the quantity demanded is (greater or less) than the quantity supplied. This...
At the current price, the quantity demanded is (greater
or less) than the quantity supplied. This means that the
market is currently experiencing a (surplus or
shortage). In order to adjust, the market price will
(decrease or increase) until the quantity demanded
and quantity supplied are equal. The result is an equilibrium
quantity of ________ and an equilibrium price of $
_________.
Back to Assignment Attempts: Average: 1 1. Working Numbers and Graphs Q1 Suppose the current price of a...
The U.S. wheat market is shown in the figure below. Suppose the United States wants to protect its wheat industry by imposing a tariff of $1 per bushel on foreign wheat, which currently sells at the world price of $4 per bushel. Your Graph Score: 0% Price (S) CS 10 PS DWL2 DWL CS World price 20 40 60 80 100 120 140 160 180 Quantity of wheat (millions) a. Use the tool provided (CS) to draw the consumer surplus...
Market Distortion - Price Floors Exercise 1 (Algo) The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pou per month). Market for Wholesale Butter Quantity of Butter Demanded Quantity of k Butter Supplied (millions of pounds) (millions of Price (dollars pounds) per pound) $0.80 63 107 71 104 0.90 79 101...
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4. Consider the product market for "Winter Wheat". If the Government has established a price floor and intends to purchase all surplus wheat draw the probable demand and supply curves and identify the equilibrium price and quantity demanded. (a) Determine the cost to the government to buy all the surplus wheat during a "bumper" crop year (b) An alternative program wil1 pay farmers to restrict acreage production. Explain how this alternative could result in the same price floor by shifting...
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At the current price, the quantity demanded is (greater
or less) than the quantity supplied. This means that the
market is currently experiencing a (surplus or
shortage). In order to adjust, the market price will
(decrease or increase) until the quantity demanded
and quantity supplied are equal. The result is an equilibrium
quantity of ________ and an equilibrium price of $
_________.
Back to Assignment Attempts: Average: 1 1. Working Numbers and Graphs Q1 Suppose the current price of a...
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