The Data Shows the Demand and Supply for Wheat

question 91

Multiple Choice

The data shows the demand and supply for wheat:
quantity of bushels per year (in million)

-Refer to the information above to answer this question.What would be the cost to the government to support a price floor of $16 per bushel of wheat?

• A)The cost would be $160 million to the government since it has to purchase the surplus wheat.
• B)The cost would be zero to the government since the farmers are producing the wheat.
• C)The cost would be zero to the government since the market will purchase the surplus wheat.
• D)The cost would be $240 million to the government since the farmers receive this amount from the sales of the wheat in the market.
• E)The cost would be $400 million to the government since it has to purchase all the wheat produced by the farmers.

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Definitions:

Amphetamines

A class of stimulant drugs used to treat ADHD and narcolepsy, which can also be abused for their euphoric effects.

Gamma-Hydroxybutyrate (GHB)

A central nervous system depressant often used recreationally for its euphoric effects, but also recognized for its use in treating narcolepsy and potential misuse as a "date rape" drug.

Liquid Ecstasy

A colloquial term for gamma-hydroxybutyrate (GHB), a central nervous system depressant often used recreationally for its euphoric and sedative effects.

Date-Rape Drug

A substance used to incapacitate someone in order to commit a sexual assault.