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 new equilibrium quantity traded in this market?
A) Q = 8;
B) Q = 2;
C) Q = 7
D) Q = 3
Correct Answer:
Verified
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