Hi, please help me with the following questions Suppose the government buys up all of the farmers' output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from farmers? What is the revenue received from the government's sale?In this problem we have considered two government schemes:A price floor is established and the government purchases any excess output andThe government buys all the farmers' output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer? Table 4-5 below contains information about the corn market. An agricultural price floor is a price that the government guaranteesfarmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel.Price per Bushel(dollars)$2Quantity Demanded (bushels) Quantity Supplied (bushels)40,000434,0004,00028,0008,000824,00016,0001020,00020,0001218,00028,00036,0001412,000166,00040,000

A consumer is a person or group of people who purchases or we can says buys the product or service…

Answered: Suppose the government buys up all of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hi, please help me with the following questions

Suppose the government buys up all of the farmers' output at the floor price and then sells the output to consumers at whatever price it can get. Under this scheme, what is the price at which the government will be able to sell off all of the output it had purchased from farmers? What is the revenue received from the government's sale?
In this problem we have considered two government schemes:
1. A price floor is established and the government purchases any excess output and
2. The government buys all the farmers' output at the floor price and resells at whatever price it can get. Which scheme will taxpayers prefer?

Table 4-5 below contains information about the corn market. An agricultural price floor is a price that the government guarantees
farmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel.
Price per Bushel
(dollars)
$2
Quantity Demanded (bushels) Quantity Supplied (bushels)
40,000
4
34,000
4,000
28,000
8,000
8
24,000
16,000
10
20,000
20,000
12
18,000
28,000
36,000
14
12,000
16
6,000
40,000

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