The Demand Function for Corn Is Q = 200 -

question 4

Multiple Choice

The demand function for corn is q = 200 - p and the supply function is q = 50 + .5p. The government sets the price of corn at $150 and agrees to purchase and destroy any excess supply of corn at that price. How much money does it cost the government to buy this corn?

• A) $11,250
• B) $18,750
• C) $7,500
• D) $10,750
• E) $14,500

Evaluate the impact of specialization and trade on world production and consumption.

Calculate the opportunity cost of producing goods in different countries.

Distinguish between absolute and comparative advantage in international trade contexts.

Understand the market impact of international trade on consumer and producer surplus.

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Definitions:

Respondent Behavior

Behavior that is elicited by a prior stimulus without the need for learning, typically reflecting reflexive or involuntary responses.

Studying

The act of devoting time and attention to acquiring knowledge on an academic subject, especially by means of books.

Blushing

A physiological response characterized by the reddening of the face due to emotional states such as embarrassment, shame, or modesty.

Positive Reinforcer

An incentive that, when applied following an action, heightens the probability of the action being repeated.