The market demand function for wheat is Qd= 1O - 2Pand the market supply function is QS = 4P-2, 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? Multiple Choice $4 billion $8 billion $12 billion $10 billion
The market demand function for wheat is Qd= 1O - 2Pand the market supply function is QS = 4P-2, 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? Multiple Choice $4 billion $8 billion $12 billion $10 billion
Chapter3: Market Demand And Supply
Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency
Problem 6SQ
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