The data shows the demand and supply for wheat:
quantity of bushels per year (in million)

-Refer to the information above to answer this question.What would be the farmers' revenue from the sale of the wheat in the market if the price floor is $16 per bushel of wheat?

Question

The data shows the demand and supply for wheat:
quantity of bushels per year (in million)
 
-Refer to the information above to answer this question.What would be the farmers' revenue from the sale of the wheat in the market if the price floor is $16 per bushel of wheat?

Quizplus · Accepted Answer

A price floor set above the equilibrium price would lead to a surplus of wheat, meaning all produced wheat would be sold at the price floor. Assuming the quantity of wheat produced and the price floor are given, the revenue is calculated by multiplying the quantity of wheat by the price floor. Without specific quantities and prices provided in the question, option B is chosen based on the assumption that it correctly calculates revenue based on a hypothetical quantity of wheat sold at $16 per bushel.

The Data Shows the Demand and Supply for Wheat