Explain clearly

In working these problems, assume that you are a policy analyst working for the Secretary of Agriculture. The information you need to answer the questions is given in the table below. Note that quantities are given in million hundredweight (cwt) and prices are given in S/cwt. (FYI: a hundredweight is 100 lbs but you don't need to know that to work this problem set.) You may not need all the information given in the table for every question. You must show your work on one or more separate sheets and staple them to the problem set. Equilibrium price Before Rice Quantities and Prices elasticities Programs Supply (million cwt) 0.75 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) 10.00 Consumer price (S/cwt) 10.00 Target Price ($/cwt) None Support Price (S/cwt) None Government Cost (mil $) None NOTE: -- = Not applicable. 1. The Secretary of Agriculture is considering recommending a surplus purchase program with a support price of $14.00/cwt to the President but before he does he wants you to determine how much rice the government will have to purchase to support price at that level and what the cost to the government will be. Fill in the blanks below with your answers to the Secretary. Surplus to purchase = Cost to the government =_ 2. Congressman Drinksalot is proposing a marketing loan program with the loan rate set at $14.00/cwt instead of a government surplus purchase program to support price at $14.00/cwt because he claims it will cost the government less than a surplus purchase program. The Secretary wants to know whether the Congressman is right and asks you to calculate the cost of the marketing loan program to the government. Fill in the blanks below with your answers to the Secretary. Cost of marketing loan program to the government = Who's right - the Secretary or the Congressman