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-(Figure: Supply and Demand in Agriculture) Use Figure: Supply and Demand in Agriculture.If a price floor at P₄ is set to help improve farm incomes and the government wants to assure farmers that their output will be purchased,the government must purchase an amount of output equal to:

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-(Figure: Supply and Demand in Agriculture) Use Figure: Supply and Demand in Agriculture.If a price floor at P₄ is set to help improve farm incomes and the government wants to assure farmers that their output will be purchased,the government must purchase an amount of output equal to:

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If a price floor at P4 is set, the quantity supplied will be Q2 and the quantity demanded will be Q1. The government must purchase an amount of output equal to Q2 - Q1 to ensure that farmers' output will be purchased.

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