Exhibit 39-4
-Refer to Exhibit 39-4.At a target price of $4 per bushel,how much does the private sector spend on wheat?
A)$2,400
B)$1,800
C)$2,800
D)$3,600

Question

Exhibit 39-4 
-Refer to Exhibit 39-4.At a target price of $4 per bushel,how much does the private sector spend on wheat?
A)$2,400 
B)$1,800 
C)$2,800 
D)$3,600

Quizplus · Accepted Answer

At a target price of $4 per bushel, the equilibrium point is where the quantity demanded equals the quantity supplied, which is at 450 bushels. Therefore, at this price, the private sector would spend:

$4/bushel x 450 bushels = $1,800

Exhibit 39-4 -Refer to Exhibit 39-4.At a Target Price of $4 Per