Chapter1: Making Economics Decisions
Section: Chapter Questions
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![[Q: 9-5176249] Consider the market for an agricultural commodity. The direct market demand curve is Q(P) = 360 – 15P and the direct market supply curve is Q(P) = 15P.
At the market equilibrium, what quantity will be sold and for what price?
Quantity: 180. (Round your answer to the nearest whole number and use it in subsequent calculations).
Price: 12. (Round your answer to the nearest whole number and use it in subsequent calculations).
Suppose the government imposes a price floor at P=$18 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and
producers face under this policy?
Quantity:
(Round your answer to the nearest whole number and use it in subsequent calculations).
Price consumers pay: (Round your answer to the nearest whole number and use it in subsequent calculations).
Price producers receive:. (Round your answer to the nearest whole number and use it in subsequent calculations).
What is the welfare impact of this policy?
Change in consumer surplus: . (Round your answer to one decimal place; Include a negative sign when appropriate).
Change in producer surplus:
(Round your answer to one decimal place; Include a negative sign when appropriate).
Government expenditure:
(Round your answer to one decimal place; Enter as a positive number).
Change in social surplus:
(Round your answer to one decimal place; Include a negative sign when appropriate).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ce5395d-916a-4f1e-b54f-d4a669a0f6c8%2Fe752fbc0-7625-4402-bd39-09eacf0ec3c9%2Fbtyt43_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[Q: 9-5176249] Consider the market for an agricultural commodity. The direct market demand curve is Q(P) = 360 – 15P and the direct market supply curve is Q(P) = 15P.
At the market equilibrium, what quantity will be sold and for what price?
Quantity: 180. (Round your answer to the nearest whole number and use it in subsequent calculations).
Price: 12. (Round your answer to the nearest whole number and use it in subsequent calculations).
Suppose the government imposes a price floor at P=$18 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and
producers face under this policy?
Quantity:
(Round your answer to the nearest whole number and use it in subsequent calculations).
Price consumers pay: (Round your answer to the nearest whole number and use it in subsequent calculations).
Price producers receive:. (Round your answer to the nearest whole number and use it in subsequent calculations).
What is the welfare impact of this policy?
Change in consumer surplus: . (Round your answer to one decimal place; Include a negative sign when appropriate).
Change in producer surplus:
(Round your answer to one decimal place; Include a negative sign when appropriate).
Government expenditure:
(Round your answer to one decimal place; Enter as a positive number).
Change in social surplus:
(Round your answer to one decimal place; Include a negative sign when appropriate).
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