Suppose That the Market for Corn Is Initially in Equilibrium

question 14

Multiple Choice

Suppose that the market for corn is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as ; the supply curve can be expressed as Quantity is expressed in millions of bushels.Now suppose that the federal government imposes a price floor of $3 per bushel of corn.What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?

• A) $9.375
• B) $2.25.
• C) $1.
• D) $0.63.

---

Definitions:

Fundamental Attribution Error

The tendency to overemphasize dispositional explanations for behaviour at the expense of situational explanations.

Social Category

Groupings of individuals based on shared characteristics or social identity, such as race, gender, or age.

Situational Attribution

Situational attribution is the process of attributing an individual's behavior to external factors or circumstances rather than to their internal characteristics or dispositions.

Consensus Cues

Attribution cues that reflect how a person’s behaviour compares with that of others.