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Consider the graph below. What happened to the market when the government imposed a minimum price of $5.50 for corn? Price of Corn $6.50 Supply
Consider the graph below. What happened to the market when the government imposed a minimum price of $5.50 for corn? Price of Corn $6.50 Supply Consumer $6.00 Surplus $5.50 Minimum Price Deadweight $5.00 Producer Loss Surplus $4.50 Producer $4.00 Surplus $3.50 $3.00 Demand 0 2 3 5 6 Quantity of Corn (in millions of bushels) X ( a.) A deadweight loss is created. b.) Consumers and producers both benefit from the $5.50 minimum price. ( c.) Producer surplus is unchanged. d.) A larger consumer surplus is O created
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