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 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. 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 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. Rank kale farmers' preference for the three options, from most preferred to least preferred.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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