Figuie 3.21 depicts the market for rice in thed) As a result of the price floor, what will be the totalamount of the surplus? What will be the dollaramount of this surplus? Who will be responsible forbuying this surplus, the government or the farmers?Surplus: -Dollar amount of surplus: $ -Surplus is responsibility of: .e) Suppose that after the imposition of the price floor,the demand in Shiva increases by 1.5 million kilos.Draw the new demand on Figure 3.2!, and labelit D.f) Now, how much in total will rice buyers be paying?country of Shiva.FIGURE-3.21kilos of rice$10Price: .Quantity traded: .Total spending: .g) What will be the total amount of the new surplus?What will be the dollar amount of this surplus?Surplus: -Dollar amount of surplus: $ .h) After the change in demand, what would happen if,as a result of a bad harvest, the supply now drops bythree million kilos? Draw the new supply curve onFigure 3.21, and label it S,.i) What will be the new price, the quantity traded, thetotal spending of buyers, the surplus and the dollaramount of the surplus?kilos of rice4 6 e 10Quentity per period (millions of kilos)212a) What is the present equilibrium price and quantitytraded in this market?- Quantity traded: -Price:.b) How much, in total, are rice buyers paying for thisquantity?.c) Suppose that government introduces a price floor of$8 per kilo. How much in total will rice buyers nowbe paying? -Price:Quantity traded:.Total spending: .Surplus: .Dollar amount of surplus: $.kilosPrice

Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Figuie 3.21 depicts the market for rice in the country of Shiva. $10 2 2 16 Quentity per period (millions of kilos) 10 12 a) What is the present equilibrium price and quantity traded in this market? Price:. Quantity traded: . b) How much, in total, are rice buyers paying for this quantity? - c) Suppose that government introduces a price floor of $8 per kilo. How much in total will rice buyers now be paying?.

Figuie 3.21 depicts the market for rice in the country of Shiva. $10 2 2 16 Quentity per period (millions of kilos) 10 12 a) What is the present equilibrium price and quantity traded in this market? Price:. Quantity traded: . b) How much, in total, are rice buyers paying for this quantity? - c) Suppose that government introduces a price floor of $8 per kilo. How much in total will rice buyers now be paying?.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 2PA

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Question

Figuie 3.21 depicts the market for rice in the
d) As a result of the price floor, what will be the total
amount of the surplus? What will be the dollar
amount of this surplus? Who will be responsible for
buying this surplus, the government or the farmers?
Surplus: -
Dollar amount of surplus: $ -
Surplus is responsibility of: .
e) Suppose that after the imposition of the price floor,
the demand in Shiva increases by 1.5 million kilos.
Draw the new demand on Figure 3.2!, and label
it D.
f) Now, how much in total will rice buyers be paying?
country of Shiva.
FIGURE-3.21
kilos of rice
$10
Price: .
Quantity traded: .
Total spending: .
g) What will be the total amount of the new surplus?
What will be the dollar amount of this surplus?
Surplus: -
Dollar amount of surplus: $ .
h) After the change in demand, what would happen if,
as a result of a bad harvest, the supply now drops by
three million kilos? Draw the new supply curve on
Figure 3.21, and label it S,.
i) What will be the new price, the quantity traded, the
total spending of buyers, the surplus and the dollar
amount of the surplus?
kilos of rice
4 6 e 10
Quentity per period (millions of kilos)
2
12
a) What is the present equilibrium price and quantity
traded in this market?
- Quantity traded: -
Price:.
b) How much, in total, are rice buyers paying for this
quantity?.
c) Suppose that government introduces a price floor of
$8 per kilo. How much in total will rice buyers now
be paying? -
Price:
Quantity traded:.
Total spending: .
Surplus: .
Dollar amount of surplus: $.
kilos
Price

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