The Market Demand Function for Wheat Is Q^d = 10

question 18

Multiple Choice

The market demand function for wheat is Q^d = 10 - 2P and the market supply function is Q^s = 4P - 2,both measured in billions of bushels per year.Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal.How much wheat goes to waste under the program?

• A) 10 billion bushels per year
• B) 4 billion bushels per year
• C) 6 billion bushels per year
• D) No wheat goes to waste.

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Definitions:

Hope And Optimism

Refers to the state of having a positive outlook and expectation for the future, which can significantly influence psychological well-being.

Demand Side

Refers to the consumers or buyers in an economy, focusing on their behavior and how their decisions affect market demand for goods and services.

Supply Side

Economic policies or theories emphasizing production incentives, tax reductions, and deregulation to drive economic growth by increasing supply.

Land's Rent

The price paid for the use of land or real estate, reflecting its productivity or utility in generating income.