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atIMG314. [Q: 9-5584240] Consider the market for an agricultural commodity. The market demand in this market is estimated to g K be P(Q) = 6.4-0.1Q
atIMG314. [Q: 9-5584240] Consider the market for an agricultural commodity. The market demand in this market is estimated to g K be P(Q) = 6.4-0.1Q and the market supply is estimated to be P(Q) = 1.2 +0.1Q. Suppose the government imposes a price floor of $5.10 per unit and supports the floor using a price support policy in which the government promises to buy any excess supply. This policy will create a wedge between quantity demanded and quantity supplied. What is the size of the quantity wedge? atIMG315.j g O A. 22.00 units O B. 25.00 units O C. 26.00 units O D. 29.00 units atIMG316.jpe O E. 28.00 units g atIMG317.jpe g atIMG318.jpe 9
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