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Suppose, as in exercises 18.9 and 18.10, that the domestic demand curve for bushels of corn is given by p = 24 0.00000000225x while the

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Suppose, as in exercises 18.9 and 18.10, that the domestic demand curve for bushels of corn is given by p = 24 0.00000000225x while the domestic supply curve is given by p = 1 + 0.00000000025x. 3. Suppose the government imposes a price ceiling of 13 = 3.5 (as in exercise 18.9). In the ab- sence of any other program, how much will consumers pay (per bushel) and how much will sellers keep (per bushel) after accounting for the additional marginal costs incurred by produc- ers to compete for consumers? b. If you wanted to replicate this same outcome using taxes or subsidies, what policy would you propose

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