The weekly demand and supply for corn is given by the following equations where P is the price per ear of corn, and Q is the number of ears of corn in thousands. Qd = 140-10P and Qs = -10 + 5P. Since corn can be used for ethanol production, the government wishes to stimulate corn consumption. Thus, it sets a price of $7 per ear of corn. a. The government stimulus is an example of: a price ceiling or price floor?  b. The ES/ED is: = c. At P = $7, the quantities traded are= d. CS at P=$7 is= e. PS at P=$7 is= f. The Pf or full economic price at P=$7 is:

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Chapter1: Making Economics Decisions
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The weekly demand and supply for corn is given by the following equations where P is the price per ear of corn, and Q is the number of ears of corn in thousands. Qd = 140-10P and Qs = -10 + 5P. Since corn can be used for ethanol production, the government wishes to stimulate corn consumption. Thus, it sets a price of $7 per ear of corn.

a. The government stimulus is an example of: a price ceiling or price floor

b. The ES/ED is: =

c. At P = $7, the quantities traded are=

d. CS at P=$7 is=

e. PS at P=$7 is=

f. The Pf or full economic price at P=$7 is:

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