The Market Demand Function for Wheat Is and the Market

question 9

Multiple Choice

The market demand function for wheat is and the market supply function is ,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 price floor to achieve their goal.What is the size of the aggregate surplus?

• A) $4 billion
• B) $8 billion
• C) $10 billion
• D) $12.6 billion

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