Price per bushel $6 A 2 1 I 0 bushels per month I I 1 I 2 1 I I 3 Supply Demand Refer to the above diagram. If the government sets a price floor at $6 per bushel to help farmers and ensures that their output will be purchased, it would have to purchase an amount of wheat equal to: Millions of bushels per month

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Price per bushel
A
B
C
$6
D
2
Refer to the above diagram. If the government sets a price floor at $6 per bushel to help farmers
and ensures that their output will be purchased, it would have to purchase an amount of wheat
equal to:
0 bushels per month
2 million bushels per month
1 million bushels per month
2
3 million bushels per month
3
Supply
Demand
Millions of bushels
per month
X
Transcribed Image Text:Price per bushel A B C $6 D 2 Refer to the above diagram. If the government sets a price floor at $6 per bushel to help farmers and ensures that their output will be purchased, it would have to purchase an amount of wheat equal to: 0 bushels per month 2 million bushels per month 1 million bushels per month 2 3 million bushels per month 3 Supply Demand Millions of bushels per month X
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