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1. Pressed by lobbyists for the corn industry, Congress is considering adding a price floor in the market for corn. The market is currently at equilibrium. The proposed price floor would be at $6 per bushel. Below is the table for the corn market. P per bushel $2 $3 $4 $5 $6 $7 $8 Qs (mill) Qd (mill) 0 60 10 50 20 40 30 30 40 20 50 10 60 0 a. Draw a graph that illustrates the effect of the price floor on the corn market. Label the quantity supplied (Qs) and quantity demanded (Qd) when the floor is in place. b. Explain how your graph illustrates the: i. Benefit to corn producers ii. 111. Harm to corn consumers Inefficiency that results from this policy

1. Pressed by lobbyists for the corn industry, Congress is considering adding a price floor in the market for corn. The market is currently at equilibrium. The proposed price floor would be at $6 per bushel. Below is the table for the corn market. P per bushel $2 $3 $4 $5 $6 $7 $8 Qs (mill) Qd (mill) 0 60 10 50 20 40 30 30 40 20 50 10 60 0 a. Draw a graph that illustrates the effect of the price floor on the corn market. Label the quantity supplied (Qs) and quantity demanded (Qd) when the floor is in place. b. Explain how your graph illustrates the: i. Benefit to corn producers ii. 111. Harm to corn consumers Inefficiency that results from this policy

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer parts a,b, and its subsections and please show your work.

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1. Pressed by lobbyists for the corn industry, Congress is considering adding a price floor in the market for corn. The market is currently at equilibrium. The proposed price floor would be at $6 per bushel. Below is the table for the corn market. P per bushel $2 $3 $4 $5 $6 $7 $8 Qs (mill) Qd (mill) 0 60 10 50 20 40 30 30 40 20 50 10 60 0 a. Draw a graph that illustrates the effect of the price floor on the corn market. Label the quantity supplied (Qs) and quantity demanded (Qd) when the floor is in place. b. Explain how your graph illustrates the: i. Benefit to corn producers ii. 111. Harm to corn consumers Inefficiency that results from this policy
Transcribed Image Text:1. Pressed by lobbyists for the corn industry, Congress is considering adding a price floor in the market for corn. The market is currently at equilibrium. The proposed price floor would be at $6 per bushel. Below is the table for the corn market. P per bushel $2 $3 $4 $5 $6 $7 $8 Qs (mill) Qd (mill) 0 60 10 50 20 40 30 30 40 20 50 10 60 0 a. Draw a graph that illustrates the effect of the price floor on the corn market. Label the quantity supplied (Qs) and quantity demanded (Qd) when the floor is in place. b. Explain how your graph illustrates the: i. Benefit to corn producers ii. 111. Harm to corn consumers Inefficiency that results from this policy
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