Suppose that the equilibrium price of a bushel of corn is $0.75 per gallon.The government decides to place a minimum price on corn and will not allow sellers to charge less than $0.90 per bushel.Draw this situation using a graph.Make sure that you show the original equilibrium and the effect of the minimum price on the market.What will happen in this market? What will happen to total surplus?

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The Answer of Suppose that the equilibrium price of a bushel of corn is $0.75 per gallon.The government decides to place a minimum price on corn and will not allow sellers to charge less than $0.90 per bushel.Draw this situation using a graph.Make sure that you show the original equilibrium and the effect of the minimum price on the market.What will happen in this market? What will happen to total surplus?

Suppose That the Equilibrium Price of a Bushel of Corn