Suppose That the Market for Corn Is Initially in Equilibrium $P = 10 - Q ^ { d }$

question 33

Multiple Choice

Suppose that the market for corn is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as $P = 10 - Q ^ { d }$ ; the supply curve can be expressed as $P = 0.25 Q ^ { s }$ . 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 most efficient producers are active?

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

Understand the importance of providing valued goods or services in a market economy for earning high wages.

Assess the effects of automation on employment and production costs.

Differentiate the causes and outcomes of employment discrimination.

Understand the consequences of employment discrimination on wages and economic efficiency.

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