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

question 49

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 voluntary production reduction program to achieve their goal.What is the size of the deadweight loss from the program?

• A) $1.5 billion
• B) $3 billion
• C) $4.5 billion
• D) $18 billion

---

Definitions:

Real Attitude Change

Real attitude change refers to a genuine shift in a person's beliefs, feelings, or positions on a particular issue, resulting from persuasion, new information, or reevaluation of existing information.

Counterinfluence

Methods or strategies used to combat or reduce the effect of influence attempts by others.

Assertiveness

The quality of being self-assured and confident without being aggressive, in order to express one's opinions and needs directly.

Determination

A quality of persistently pursuing one's goals despite challenges.