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Farmers play an important role for a country to have strong food security. Country N hopes to protect its wheat farmers by making sure that
Farmers play an important role for a country to have strong food security. Country N hopes to protect its wheat farmers by making sure that they are able to make a profit from farming. Country N is planning to introduce a minimum price system for wheat, which will result in a higher price. Answer the following questions: The minimum price system for wheat introduced by Country N is an example of? F . Type C for Price Ceiling, F for Price Floor, M for Market Equilibrium Price, B for Black Market Price or D for Deadweight Loss Price. Without the minimum price system, it is known that the wheat market in Country N will be at equilibrium with a price of $235 per tonne and a quantity of 6.55 thousand tonnes. Country N plans to introduce a minimum price of $267 per tonne. It is estimated that this will decrease the quantity demanded to 5.62 thousand tonnes. Farmers are happy with the higher price and will be willing to supply more wheat. However, as quantity demand is lower due to higher prices, less quantity is traded, resulting in a deadweight loss. Given that the willingness to supply for farmers is
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