Assignment Three 2.15.08

Assignment Three 2.15.08 - Assignment Three. AGEC 505....

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Assignment Three. AGEC 505. Agricultural Market Structures. Spring 2008. Due: 11:30 AM, Friday, February 15, 2008. Turn in TYPED hard copy before class. Assignments turned in after 11:30 AM will be marked 10 percent off. This late policy will be strictly enforced . Assignments turned in after the deadline will be marked 10 percent off each day that they are late (for example, an assignment due on Friday that is turned in on Monday will be marked 40 percent off). Exceptions will be granted in advance by the instructor. Assignment must be typed, 50% off for untyped answers. READ : Chapter 9. 1. (10 pts) Kansas Natural Gas: A Price Ceiling The inverse demand and supply curves for natural gas are given by: P = 10 – 0.4Q d and P = 0.1Q s , where P is the price of natural gas in dollars per thousand cubic feet (USD/mcf, where the “m” is equal to 1000… think like a Roman) and Q is the quantity of natural gas in trillion cubic feet (tcf). The price ceiling is equal to $1/mcf. a. (2 pts) Explain the purpose of this policy: what is it intended to do?
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Assignment Three 2.15.08 - Assignment Three. AGEC 505....

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