The market demand function for wheat is Qd= 1O - 2Pand the market supply function is QS = 4P-2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. What is the size of the aggregate surplus? Multiple Choice $4 billion $8 billion $12 billion $10 billion
The market demand function for wheat is Qd= 1O - 2Pand the market supply function is QS = 4P-2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. What is the size of the aggregate surplus? Multiple Choice $4 billion $8 billion $12 billion $10 billion
Chapter4: Markets In Action
Section: Chapter Questions
Problem 15SQ
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![The market demand function for wheat is Qd = 10 - 2Pand the mlarket supply function is QS = 4P-2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to
$3/bushel and they impose a price floor to achieve their goal. What is the size of the aggregate surplus?
Multiple Choice
$4 billion
$8 billion
$12 billion
$10 billion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F764969f5-f5e9-4446-9971-e1cf8bf72f70%2Fd9473369-96ff-46d4-a035-c05709fe0585%2F8k8dmvc_processed.png&w=3840&q=75)
Transcribed Image Text:The market demand function for wheat is Qd = 10 - 2Pand the mlarket supply function is QS = 4P-2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to
$3/bushel and they impose a price floor to achieve their goal. What is the size of the aggregate surplus?
Multiple Choice
$4 billion
$8 billion
$12 billion
$10 billion
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