The table shows the demand and supply schedules for hay before and during a major drought. During the drought, suppose the government gave all farmers an equal quantity of hay. Resale of hay is not permitted. W A. maximized; rises OB. maximized; falls OC. maximized; does not change OD. less than the maximum possible; falls O E. less than the maximum possible; rises Suppose the government buys more than the equilibrium quantity of hay and pays the supply price for this quantity. Total surplus purchased, and the price of a bale @ # 73 compared to the total surplus when the equilibrium quantity is compared to the equilibrium price. OA. increases; rises OB. decreases; rises OC. decreases; falls OD. increases; falls OE. remains unchanged; remains unchanged e ... с $ 4 7 % 5 O t Oll ^ 6 y & 07 7 Price (dollars per before drought bale) (thou 0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 U * Quantity demanded 8 0 40 35 30 25 20 15 10 5 0 6
The table shows the demand and supply schedules for hay before and during a major drought. During the drought, suppose the government gave all farmers an equal quantity of hay. Resale of hay is not permitted. W A. maximized; rises OB. maximized; falls OC. maximized; does not change OD. less than the maximum possible; falls O E. less than the maximum possible; rises Suppose the government buys more than the equilibrium quantity of hay and pays the supply price for this quantity. Total surplus purchased, and the price of a bale @ # 73 compared to the total surplus when the equilibrium quantity is compared to the equilibrium price. OA. increases; rises OB. decreases; rises OC. decreases; falls OD. increases; falls OE. remains unchanged; remains unchanged e ... с $ 4 7 % 5 O t Oll ^ 6 y & 07 7 Price (dollars per before drought bale) (thou 0 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 U * Quantity demanded 8 0 40 35 30 25 20 15 10 5 0 6
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![The table shows the demand and supply schedules for hay before and during a
major drought.
During the drought, suppose the government gave all farmers an equal quantity of
hay. Resale of hay is not permitted.
W
OA. maximized; rises
OB. maximized; falls
OC. maximized; does not change
OD. less than the maximum possible; falls
O E. less than the maximum possible; rises
Suppose the government buys more than the equilibrium quantity of hay and pays
the supply price for this quantity.
Total surplus
purchased, and the price of a bale
@
#
73
OA. increases; rises
OB. decreases; rises
OC. decreases; falls
OD. increases; falls
O E. remains unchanged; remains unchanged
compared to the total surplus when the equilibrium quantity is
compared to the equilibrium price.
e
с
$
4
7
%
5
O
t
Oll
6
y
07
&
7
Price
(dollars per before drought
bale)
(tho
0
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
*
Quantity
demanded
8
40
35
30
25
20
15
10
5
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ba9694f-ac5f-4c6b-924f-7226095247f2%2Fd3c07cfc-c4d7-453a-9726-dd6a3d0dd89b%2Fc5hp9e3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table shows the demand and supply schedules for hay before and during a
major drought.
During the drought, suppose the government gave all farmers an equal quantity of
hay. Resale of hay is not permitted.
W
OA. maximized; rises
OB. maximized; falls
OC. maximized; does not change
OD. less than the maximum possible; falls
O E. less than the maximum possible; rises
Suppose the government buys more than the equilibrium quantity of hay and pays
the supply price for this quantity.
Total surplus
purchased, and the price of a bale
@
#
73
OA. increases; rises
OB. decreases; rises
OC. decreases; falls
OD. increases; falls
O E. remains unchanged; remains unchanged
compared to the total surplus when the equilibrium quantity is
compared to the equilibrium price.
e
с
$
4
7
%
5
O
t
Oll
6
y
07
&
7
Price
(dollars per before drought
bale)
(tho
0
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
*
Quantity
demanded
8
40
35
30
25
20
15
10
5
0
![The table shows the demand and supply schedules for hay before and during a
major drought.
During the drought, suppose the government gave all farmers an equal quantity of
hay. Resale of hay is not permitted.
Suppose the government buys the equilibrium quantity of hay determined by
demand and supply during the drought.
and the price of a bale
Total surplus is
pre-drought price.
OA. maximized; rises
OB. maximized; falls
OC. maximized; does not change
OD. less than the maximum possible, falls
OE less than the maximum possible; rises
Suppose the government buys more than the equilibrium quantity of hay and pays
the supply price for this quantity
Total surplus compared to the total surplus when the equilibrium quantity is
purchased, and the price of a bale compared to the equilibrium price.
OA. increases; rises
JU C
3
e
$
C
r
f
5
compared to the
t
6.0
g
6
Oll
y
h
&
7
O
n
u
DODO
V
b
j
*
8
bale)
2
0
0.50
1.00
1.50
2.00
2.50
Price
during
(dollars per before drought drought
(thousands of bales)
60
55
50
45
40
35
30
3.00
3.50
4.00
O
Quantity
demanded
m
9
k
40
35
30
29
25
20
15
10
5
0
Quantity
demanded
O
25
20
)
O
Quantity
supplied
alt
0
5
10
15
20
25
30
35
40
Next
р
mpts
0 of
D
100
?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ba9694f-ac5f-4c6b-924f-7226095247f2%2Fd3c07cfc-c4d7-453a-9726-dd6a3d0dd89b%2Fbxkvul_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table shows the demand and supply schedules for hay before and during a
major drought.
During the drought, suppose the government gave all farmers an equal quantity of
hay. Resale of hay is not permitted.
Suppose the government buys the equilibrium quantity of hay determined by
demand and supply during the drought.
and the price of a bale
Total surplus is
pre-drought price.
OA. maximized; rises
OB. maximized; falls
OC. maximized; does not change
OD. less than the maximum possible, falls
OE less than the maximum possible; rises
Suppose the government buys more than the equilibrium quantity of hay and pays
the supply price for this quantity
Total surplus compared to the total surplus when the equilibrium quantity is
purchased, and the price of a bale compared to the equilibrium price.
OA. increases; rises
JU C
3
e
$
C
r
f
5
compared to the
t
6.0
g
6
Oll
y
h
&
7
O
n
u
DODO
V
b
j
*
8
bale)
2
0
0.50
1.00
1.50
2.00
2.50
Price
during
(dollars per before drought drought
(thousands of bales)
60
55
50
45
40
35
30
3.00
3.50
4.00
O
Quantity
demanded
m
9
k
40
35
30
29
25
20
15
10
5
0
Quantity
demanded
O
25
20
)
O
Quantity
supplied
alt
0
5
10
15
20
25
30
35
40
Next
р
mpts
0 of
D
100
?
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