1.Senator Cityslicker doesn't like the Secretary's government surplus purchase program proposal or Congressman Drinksalot's marketing loan program because she says both result in too much rice production and cost too much.She proposes a mandatory acreage reduction program to push the price of rice up to $14.00/cwt. Secretary Vilsak asks you to calculate the total reduction in rice supply that would be required to push price to $14.00/cwt under Senator Cityslicker's plan.

1.(million cwt) Price elasticity of supply .75

2.(million cwt) price elasticity of demand -.4

3.

4.equilibrium before programs of supply and demand (million cwt) 189.886

5.

6.farm price and consumer price equilibrium before programs ($/cwt) 10.00

7.

what is theSupply reduction required (Do NOT include a negative sign) =

and Cost of the Senator's program? =