OTHER WORDS IN YOUR ANSWERS, NOTE: Quantities and dollar values must have THREE decimal places even if they are whole numbers. Prices must be written like this $10.00/cwt and must have TWO decimal places even if they are whole numbers. All prices and values must have dollar signs ($). Write out dollar values in millions as $1,234.567 million. Rice Quantities and Prices Supply (million cwt) price elasticities 0.75 Equilibrium Before Programs 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) 10.00 Consumer price ($/cwt) 10.00 1 Target Price (S/cwt) -- None Support Price (S/cwt) -- None Government Cost (mil S) -- None NOTE: -- = Not applicable. 4. BONUS QUESTION (OPTIONAL) (2 points): In the previous questions, Calculate the acreage reduction (%) that would be required if there is 5% slippage (Do NOT include negative sign). 5. The U.S. Rice Producers Association proposes a government funded advertising campaign to promote domestic rice consumption. They propose that the slogan for the rice promotion program should be Try the sticky little white stuff that most of the rest of the world eats because you'll like it and besides it will help rice farmers." (Time to hire an advertising agency to come up with a better slogan!) Anyway, the Secretary wants to know how much more rice people will have to eat to get the price of rice up to $14.00/cwt. Fill in the blank below with your answer to the Secretary Increased consumption required (Do NOT include a positive sign) = 6. Congresswoman Knowitall doesn't like the policy recommendations of the Secretary, Congressman Drinksalot, Senator City Slicker, or the U.S. Rice Producers Association. She proposes a price loss coverage (PLC) payment program with a reference price of $14.00/cwt and a NR loan rate set at a much lower $2.00/cwt safety net level because she says this program will lower the price to consumers like Congressman Drinksalot's proposed marketing loan program but will be cheaper than either the Secretary's or Congressman Drinksalot's programs. The Secretary asks you to determine if she is right. What would be Congresswoman Knowitall's proposed program cost? 7. Is Congresswoman Knowitall right (from Question 5) that her program lowers the price to consumers like the MLP? (Check one) YES NO CANNOT DETERMINE 8. How much cheaper or more expensive is Congresswoman Knowitall's program than Secretary Vilsak's proposed program? (INCLUDE a positive sign (+) if the answer is more expensive and a negative sign (-) if the answer is "less expensive".) 9. How much cheaper or more expensive is Congresswoman Knowitall's program than Congressman Drinksalot's proposed program? (INCLUDE a positive sign (+) if the answer is "more expensive" and a negative sign (-) if the answer is "less expensive" if needed.) OTHER WORDS IN YOUR ANSWERS, NOTE: Quantities and dollar values must have THREE decimal places even if they are whole numbers. Prices must be written like this $10.00/cwt and must have TWO decimal places even if they are whole numbers. All prices and values must have dollar signs ($). Write out dollar values in millions as $1,234.567 million. Rice Quantities and Prices Supply (million cwt) price elasticities 0.75 Equilibrium Before Programs 189.886 Demand (million cwt) -0.4 189.886 Farm Price ($/cwt) 10.00 Consumer price ($/cwt) 10.00 1 Target Price (S/cwt) -- None Support Price (S/cwt) -- None Government Cost (mil S) -- None NOTE: -- = Not applicable. 4. BONUS QUESTION (OPTIONAL) (2 points): In the previous questions, Calculate the acreage reduction (%) that would be required if there is 5% slippage (Do NOT include negative sign). 5. The U.S. Rice Producers Association proposes a government funded advertising campaign to promote domestic rice consumption. They propose that the slogan for the rice promotion program should be Try the sticky little white stuff that most of the rest of the world eats because you'll like it and besides it will help rice farmers." (Time to hire an advertising agency to come up with a better slogan!) Anyway, the Secretary wants to know how much more rice people will have to eat to get the price of rice up to $14.00/cwt. Fill in the blank below with your answer to the Secretary Increased consumption required (Do NOT include a positive sign) = 6. Congresswoman Knowitall doesn't like the policy recommendations of the Secretary, Congressman Drinksalot, Senator City Slicker, or the U.S. Rice Producers Association. She proposes a price loss coverage (PLC) payment program with a reference price of $14.00/cwt and a NR loan rate set at a much lower $2.00/cwt safety net level because she says this program will lower the price to consumers like Congressman Drinksalot's proposed marketing loan program but will be cheaper than either the Secretary's or Congressman Drinksalot's programs. The Secretary asks you to determine if she is right. What would be Congresswoman Knowitall's proposed program cost? 7. Is Congresswoman Knowitall right (from Question 5) that her program lowers the price to consumers like the MLP? (Check one) YES NO CANNOT DETERMINE 8. How much cheaper or more expensive is Congresswoman Knowitall's program than Secretary Vilsak's proposed program? (INCLUDE a positive sign (+) if the answer is more expensive and a negative sign (-) if the answer is "less expensive".) 9. How much cheaper or more expensive is Congresswoman Knowitall's program than Congressman Drinksalot's proposed program? (INCLUDE a positive sign (+) if the answer is "more expensive" and a negative sign (-) if the answer is "less expensive" if needed.)