Q8) The market demand for sorghum is given by Q^d = 500 10P^d, while the market supply curve is given by Q^s = 40P^s. The demand and supply curve are shown below. The government would like to increase the income of farmers and is considering two alternative government interventions: an acreage limitation program and a government purchase program.

With acreage With no program limitation program Impact of program Consumer surplus Producer surplus Impact on the government budget Net benefits (consumer surplus + producer surplus - government expenditure) Deadweight lossWith government With no program purchase program Impact of program Consumer surplus Producer surplus Impact on the government budget Net benefits (consumer surplus + producer surplus - government expenditure) Deadweight loss50 D 500