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The Market Demand Function for Wheat Is and the Market

Question 26

Multiple Choice

The market demand function for wheat is The market demand function for wheat is and the market supply function is ,both measured in billions of bushels per year.Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal.What is the size of the deadweight loss from the program? A) $1.5 billion B) $3 billion C) $4.5 billion D) $18 billion and the market supply function is The market demand function for wheat is and the market supply function is ,both measured in billions of bushels per year.Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal.What is the size of the deadweight loss from the program? A) $1.5 billion B) $3 billion C) $4.5 billion D) $18 billion ,both measured in billions of bushels per year.Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal.What is the size of the deadweight loss from the program?


A) $1.5 billion
B) $3 billion
C) $4.5 billion
D) $18 billion

Correct Answer:

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