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Consider the market for an agricultural commodity. The market demand curve is Q = 120 -15p and the market supply curve is Q = 15p.

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Consider the market for an agricultural commodity. The market demand curve is Q" = 120 -15p and the market supply curve is Q = 15p. At the market equilibrium, what quantity will be sold and for what price? Quantity: Price: Calculate the welfare measures for this market. Consumer surplus: Producer surplus: Suppose the government imposes a price support at p =$6.00 and supports the price by purchasing excess supply (assume the excess supply cannot be resold). What quantities will be demanded and supplied under this policy? Quantity demanded: Quantity supplied: What is the welfare impact of this policy? Change in consumer surplus: Change in producer surplus: Government expenditure: Change in welfare: " Suppose the government instead supports the price using a deficiency payment program. Compared to the policy of purchasing excess supply, what is the change in producer surplus? Round your answer to three decimal places. Change in producer surplus

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