Mylab Economics With Pearson Etext -- Access Card -- For Economics Today: The Macro View
12th Edition
ISBN: 9780133921304
Author: Miller, Roger LeRoy
Publisher: PEARSON
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Question
Chapter 4, Problem 9P
To determine
Concept introduction:
Storage: With the intention of saving, holding placement of materials or products in a place and releasing them at a later stage when there is a high demand for the product in the market is called storage.
Answer:
The answers are as under-
- The consumer expenditure incurred on Pakistani wheat crop is $2billion per year.
- The annual government expenditure incurred on Pakistani wheat crop is $1.60 billion per year.
- Amount received by Pakistani wheat farmers is $3.60 billion per year.
Explanation:
Formula Used:
- Annual Expenditure/Income=Quantity x Price per kilogram
- The quantity that consumers are willing to purchase is 10 billion kilograms. Hence, the annual consumer expenditure is = Quantity x price per kilogram
- As given in the question, the excess quantity will be purchased and stored by the government. Hence, the annual government expenditure is = Quantity x price per kilogram
- The quantity that farmers are willing to grow and harvest is 18billion kilograms. Hence, the amount received by them will be = Quantity x price per kilogram
Calculation: In the given case the price per kilogram of wheat is $0.20. Hence the expenditures and amount received by the farmers is calculated as under −
= 10 billion x $0.20
= $2billion
= 8 billion x $0.20
= $1.6billion
= 18 billion x $0.20
= $3.60 billion
Expert Solution & Answer
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Mylab Economics With Pearson Etext -- Access Card -- For Economics Today: The Macro View
Ch. 4 - Prob. 4.1LOCh. 4 - Prob. 4.2LOCh. 4 - Prob. 4.3LOCh. 4 - Prob. 4.4LOCh. 4 - Prob. 4.5LOCh. 4 - Prob. 4.1SCCh. 4 - Prob. 4.2SCCh. 4 - Prob. 4.3SCCh. 4 - Prob. 4.4SCCh. 4 - Prob. 4.5SC
Ch. 4 - Prob. 1CTQCh. 4 - Prob. 2CTQCh. 4 - Prob. 1FCTCh. 4 - Prob. 2FCTCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14P
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