Price 100 80 50 20 10 25 Supply 40 50 Demand Quantity Use the graph above to answer the following questions. The following points are on the demand curve: (10,80), (25,50), (40,20). The following points are on the supply curve: (10,20), (25,50), (40,80). Do not use dollar signs. Round to two decimal places. a) What price will consumers pay if the government promises to pay producers $80 per bushel and encourage producers to sell all of their production? b) What price will producers get if the government promises to pay producers $80 per bushel and encourage producers to sell all of their production? c) The government has promised to make up the difference between the price they promise producers and the price that consumers pay for the product. Calculate the deficiency payment in this case for all units produced.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Pricel
100
80
50
20
10
25
Supply
40 50
Demand
Quantity
Use the graph above to answer the following questions. The following points are on the demand curve: (10,80), (25,50), (40,20). The
following points are on the supply curve: (10,20), (25,50), (40,80). Do not use dollar signs. Round to two decimal places.
a) What price will consumers pay if the government promises to pay producers $80 per bushel and encourage producers to sell all of their
production?
b) What price will producers get if the government promises to pay producers $80 per bushel and encourage producers to sell all of their
production?
c) The government has promised to make up the difference between the price they promise producers and the price that consumers pay for
the product. Calculate the deficiency payment in this case for all units produced.
Transcribed Image Text:Pricel 100 80 50 20 10 25 Supply 40 50 Demand Quantity Use the graph above to answer the following questions. The following points are on the demand curve: (10,80), (25,50), (40,20). The following points are on the supply curve: (10,20), (25,50), (40,80). Do not use dollar signs. Round to two decimal places. a) What price will consumers pay if the government promises to pay producers $80 per bushel and encourage producers to sell all of their production? b) What price will producers get if the government promises to pay producers $80 per bushel and encourage producers to sell all of their production? c) The government has promised to make up the difference between the price they promise producers and the price that consumers pay for the product. Calculate the deficiency payment in this case for all units produced.
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