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Consider the market for an agricultural commodity. The direct market demand curve is Q(P) = 780 - 15P and the direct market supply curve is
Consider the market for an agricultural commodity. The direct market demand curve is Q(P) = 780 - 15P and the direct market supply curve is Q(P) = 15P. A. At the market equilibrium, what quantity will be sold and for what price? Quantity (Q): 390 . (Round your answer to two decimal places and use the rounded value in parts B and C). Price (Pc): 26 . (Round your answer to two decimal places and use the rounded value in parts B and C). B. Suppose the government imposes a price floor at P = $39.00 and uses a deficiency payment program to implement the floor. What quantity will be sold and what prices will consumers and producers face under this policy? Quantity (Q'): 195 . (Round your answer to two decimal places and use the rounded value in part C). Price consumers pay (Pd): . (Round your answer to two decimal places and use the rounded value in part C). Price producers receive (Ps): . (Round your answer to two decimal places and use the rounded value in part C). C. What is the welfare impact of this policy? Change in consumer surplus (ACS): . (Round your answer to two decimal places; Include a negative sign when appropriate). Change in producer surplus (APS): . (Round your answer to two decimal places; Include a negative sign when appropriate). Government expenditure (G): . (Round your answer to two decimal places; Enter as a positive number). Change in social surplus (ASS): . (Round your answer to two decimal places; Include a negative sign when appropriate)
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