Exhibit 39-2

-Refer to Exhibit 39-2.If P₁ is a price support,the quantity of wheat purchased by the government would be equal to

Question

Exhibit 39-2 -Refer to Exhibit 39-2.If P₁ is a price support,the quantity of wheat purchased by the government would be equal to

Quizplus · Accepted Answer

P₁ represents the minimum price support level at which the government is willing to purchase wheat. Therefore, the quantity of wheat purchased by the government would be the difference between the quantity supplied at the price support level (Q₂) and the quantity supplied at the next higher price (Q₁). This difference is represented by the expression Q₂ - Q₁, which is choice B.

Exhibit 39-2 -Refer to Exhibit 39-2.If P1 Is a Price Support,the Quantity

Exhibit 39-2 -Refer to Exhibit 39-2.If P₁ Is a Price Support,the Quantity