The supply and demand curves for corn are as follows:
Q_D = 3,750 - 725P
Q_S = 920 + 690P,
where Q = millions of bushels and P = price per bushel.
a. Calculate the equilibrium price and quantity that would prevail in the free market.
b. The government has imposed a $2.50 per bushel support price. How much corn will the government be forced to purchase?
c. Calculate the loss in consumer surplus that would occur under the support program.

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The Answer of The supply and demand curves for corn are as follows: Q_D = 3,750 - 725P Q_S = 920 + 690P, where Q = millions of bushels and P = price per bushel. a. Calculate the equilibrium price and quantity that would prevail in the free market. b. The government has imposed a $2.50 per bushel support price. How much corn will the government be forced to purchase? c. Calculate the loss in consumer surplus that would occur under the support program.

The Supply and Demand Curves for Corn Are as Follows