1.Using the data in the following table, answer the following questions:

a.Suppose that the government establishes a price ceiling of $3.70 for sunflower seeds. What will be the main effects of this price ceiling?

b.Next, suppose that the government establishes a price floor of $4.60 for sunflower seeds. What will be the main effects of this price floor?

c.What is the easiest way to eliminate the market disequilibrium caused by the price floor and price ceiling? Explain.

d.Why would the government want to impose either a price ceiling or a price floor on sunflower seeds?Who benefits and who loses from each of these government actions?

Thousands Thousands of Bushels Price per of Bushels Demanded Bushel Supplied 85 $3.40 80 3.70 75 4.00 70 4.30 65 4.60 60 4.90 18