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After it was named a "superfood", demand for kale increased dramatically (some sources say by 60% between 2007 and 2012). The entry of numerous new kale farmers into the industry has made the market perfectly competitive. The Canadian government would like to support kale farmers by offering one of three policies/programs; all three programs would lead to an equilibrium market price of $2.25. Option A: introduce a price minimum or price floor Option B: introduce a price support Option C: introduce an incentive program Option D: introduce a payment in kind program As a fifth alternative, the government could also directly give farmers a monetary transfer that makes them just as well off as if the market price were $2.25, but without actually impacting the price or quantity. Option E: make a direct monetary transfer to farmers. Market demand and supply for kale is described as QD = 2,000 - 500P and Qs = 800 + 100P. Calculate the benefits to kale farmers offered by each of the programs described above. Round to the nearest cent, if necessary. Rank kale farmers' preference for the three options, from most preferred to least preferred.

After it was named a "superfood", demand for kale increased dramatically (some sources say by 60% between 2007 and 2012). The entry of numerous new kale farmers into the industry has made the market perfectly competitive. The Canadian government would like to support kale farmers by offering one of three policies/programs; all three programs would lead to an equilibrium market price of $2.25. Option A: introduce a price minimum or price floor Option B: introduce a price support Option C: introduce an incentive program Option D: introduce a payment in kind program As a fifth alternative, the government could also directly give farmers a monetary transfer that makes them just as well off as if the market price were $2.25, but without actually impacting the price or quantity. Option E: make a direct monetary transfer to farmers. Market demand and supply for kale is described as QD = 2,000 - 500P and Qs = 800 + 100P. Calculate the benefits to kale farmers offered by each of the programs described above. Round to the nearest cent, if necessary. Rank kale farmers' preference for the three options, from most preferred to least preferred.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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After it was named a "superfood", demand for kale increased dramatically (some sources say by 60% between 2007 and 2012). The entry of numerous new kale farmers into the industry has made the market perfectly competitive. The Canadian government would like to support kale farmers by offering one of three policies/programs; all three programs would lead to an equilibrium market price of $2.25. Option A: introduce a price minimum or price floor Option B: introduce a price support Option C: introduce an incentive program Option D: introduce a payment in kind program As a fifth alternative, the government could also directly give farmers a monetary transfer that makes them just as well off as if the market price were $2.25, but without actually impacting the price or quantity. Option E: make a direct monetary transfer to farmers. Market demand and supply for kale is described as Qp = 2,000 - 500P and Qs = 800+100P. Calculate the benefits to kale farmers offered by each of the programs described above. Round to the nearest cent, if necessary. Rank kale farmers' preference for the three options, from most preferred to least preferred.
Transcribed Image Text:After it was named a "superfood", demand for kale increased dramatically (some sources say by 60% between 2007 and 2012). The entry of numerous new kale farmers into the industry has made the market perfectly competitive. The Canadian government would like to support kale farmers by offering one of three policies/programs; all three programs would lead to an equilibrium market price of $2.25. Option A: introduce a price minimum or price floor Option B: introduce a price support Option C: introduce an incentive program Option D: introduce a payment in kind program As a fifth alternative, the government could also directly give farmers a monetary transfer that makes them just as well off as if the market price were $2.25, but without actually impacting the price or quantity. Option E: make a direct monetary transfer to farmers. Market demand and supply for kale is described as Qp = 2,000 - 500P and Qs = 800+100P. Calculate the benefits to kale farmers offered by each of the programs described above. Round to the nearest cent, if necessary. Rank kale farmers' preference for the three options, from most preferred to least preferred.
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