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

question 27

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 least efficient producers are active?

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

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Definitions:

Door to door sales

The direct selling of products or services to consumers at their residences without prior invitation or appointment.

Secondary labour market

Refers to low-paying, insecure jobs with poor working conditions and limited opportunities for promotion, often contrasted with primary labour market positions that offer higher wages and job security.

Professions

Prestigious occupations that require specialized knowledge and are regulated by a governing body.

Milpa

A traditional Mesoamerican agricultural system that involves the cultivation of maize, beans, squash, and other crops in a rotating cycle, promoting biodiversity and soil health.