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The Market Demand Function for Wheat Is Qd = 10

question 40

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The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 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 aggregate surplus?

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