Please answer the following questions and record your rough work.

Use the following information to answer the next TWO questions:

Consider the market for wheat in a small rural community.Market demand for wheat in this community is linear and downward-sloping and market supply is linear and upward-sloping.In this market, there is a price floor that keeps the price of wheat above the competitive market equilibrium price and this price floor is supported by a subsidy to wheat producers.Now suppose a new dam is built in this community, producing water for irrigation to the wheat fields.This increases the productivity of the wheat fields, resulting in a rightward shift in market supply.

32. The increase in productivity will (increase/decrease) ________________ the cost of the price floor to taxpayers.

33. The increase in productivity can decrease the market equilibrium price to as low as $ ______.

Use the following information to answer the next TWO questions:

Consider the following figure, which represents a perfectly competitive market for student housing, currently in equilibrium: