Suppose that the market for corn is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as ; the supply curve can be expressed as Quantity is expressed in millions of bushels.Now suppose that the federal government imposes a price floor of $3 per bushel of corn.What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?
A) $9.375
B) $2.25.
C) $1.
D) $0.63.

Question

Suppose that the market for corn is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as  ; the supply curve can be expressed as  Quantity is expressed in millions of bushels.Now suppose that the federal government imposes a price floor of $3 per bushel of corn.What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?
A) $9.375 
B) $2.25. 
C) $1. 
D) $0.63.

Quizplus · Accepted Answer

The Answer of Suppose that the market for corn is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as  ; the supply curve can be expressed as  Quantity is expressed in millions of bushels.Now suppose that the federal government imposes a price floor of $3 per bushel of corn.What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?
A) $9.375 
B) $2.25. 
C) $1. 
D) $0.63.

Suppose That the Market for Corn Is Initially in Equilibrium