In the figure given below the government imposes a price ceiling on wheat at $6 per bushel which is below the market-clearing price of $8.D₁ and D₂ are the demand curves for wheat of Jane and Jolly respectively and DM is the market demand curve for wheat.A total of 40 bushels of wheat is available in the market and each of the consumers have been issued a tradable coupon for 20 bushels of wheat.

-Refer to Figure. What will be the equilibrium price of a coupon in this market?

Question

In the figure given below the government imposes a price ceiling on wheat at $6 per bushel which is below the market-clearing price of $8.D₁ and D₂ are the demand curves for wheat of Jane and Jolly respectively and DM is the market demand curve for wheat.A total of 40 bushels of wheat is available in the market and each of the consumers have been issued a tradable coupon for 20 bushels of wheat.
 
-Refer to Figure. What will be the equilibrium price of a coupon in this market?

Quizplus · Accepted Answer

The Answer of In the figure given below the government imposes a price ceiling on wheat at $6 per bushel which is below the market-clearing price of $8.D₁ and D₂ are the demand curves for wheat of Jane and Jolly respectively and DM is the market demand curve for wheat.A total of 40 bushels of wheat is available in the market and each of the consumers have been issued a tradable coupon for 20 bushels of wheat.
 
-Refer to Figure. What will be the equilibrium price of a coupon in this market?

In the Figure Given Below the Government Imposes a Price