HW chap 15-3

6 billion 1216 billion 286 billion worksheet

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Unformatted text preview: er s urplus New lev el of aggregate s urplus Deadweight los s Am ount ($) 96 billion 25.6 billion 121.6 billion 2.86 billion Worksheet Section: Policies Designed to Raise Prices The market demand function for corn is Qd = 28 ­ 2P The market supply function is Qs = 5P ­4 both measured in billions of bushels per year. What would be the welfare effects of a policy that put a cap of $4.00 per bushel on the price farmers can charge for corn? (Assume that corn is purchased by the consumers who place the highest value on it.) Instructions: Round quantities to...
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