10.23. The market demand for sorghum is given by Qd 500 ! 10Pd , while the...
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10.23. The market demand for sorghum is given by Qd " 500 ! 10Pd
, while the market supply curve is given by Qs " 40Ps
. The demand and supply curves are shown at right. The government would like to increase the income of farmers and is considering two alternative government interventions: an acreage limitation program and a government purchase program.
a) What is the equilibrium market price in the absence of government intervention?
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