Congresswoman Knowitall doesnt 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 Drinksalots proposed marketing loan program but will be cheaper than either the Secretarys or Congressman Drinksalots programs. The Secretary asks you to determine if she is right.

What would be Congresswoman Knowitalls proposed program cost?

Rice Quantities and Prices Supply (million cwt) price elasticities 0.75 Equilibrium Before Programs 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) 10.00 Consumer price ($/cwt) -- 10.00 Target Price ($/cwt) -- None Support Price ($/cwt) -- None Government Cost (mil $) -- None NOTE: Not applicable. Rice Quantities and Prices Supply (million cwt) price elasticities 0.75 Equilibrium Before Programs 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) 10.00 Consumer price ($/cwt) -- 10.00 Target Price ($/cwt) -- None Support Price ($/cwt) -- None Government Cost (mil $) -- None NOTE: Not applicable