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Author Question: Table 4-5 Table 4-5 above contains information about the wheat market. Answer the following ... (Read 51 times)

amal

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Table 4-5







Table 4-5 above contains information about the wheat market. Answer the following questions based on this table. 






Refer to Table 4-5.  An agricultural price floor is a price that the government guarantees farmers will receive for a particular crop. Suppose the federal government sets a price floor for wheat at $21 per bushel.

a. What is the amount of shortage or surplus in the wheat market as result of the price floor?

b. If the government agrees to purchase any surplus output at $21, how much will it cost the government?

c. If the government buys all of the farmers' output at the floor price, how many bushels of wheat will it have to purchase and how much will it cost the government?

d. Suppose the government buys up all of the farmers' output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from farmers? What is the revenue received from the government's sale?

e. In this problem we have considered two government schemes: (1) a price floor is established and the government purchases any excess output and (2) the government buys all the farmers' output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer?

f. Consider again the two schemes. Which scheme will the farmers prefer?

g. Consider again the two schemes. Which scheme will wheat buyers prefer?



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Marked as best answer by amal on Mar 15, 2019

bpool94

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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amal

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Reply 2 on: Mar 15, 2019
YES! Correct, THANKS for helping me on my review


amandalm

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Reply 3 on: Yesterday
:D TYSM

 

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