4.Congresswoman Knowitall doesn't like the policy recommendations of the Secretary, Congressman Drinksalot, Senator City Slicker, or the U.S. Rice Producers Association.She proposes a price loss coverage (PLC) payment program with a reference price of $14.00/cwt and a NR loan rate set at a much lower $2.00/cwt safety net level because she says this program will lower the price to consumers like Congressman Drinksalot's proposed marketing loan program but will be cheaper than either the Secretary's or Congressman Drinksalot's programs. The Secretary asks you to determine if she is right.

What would be Congresswoman Knowitall's proposed program cost?

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