Suppose the government decides to eliminate the biofuels mandate. The demand for corn by ethanol producers isgiven as, Qfuel=12-10P (in the absence of any mandate).

(c) Derive the producer surplus in the US corn market with and without the mandate. Are producers better or worse off under the biofuels mandate?

(d) In your opinion, is the biofuels mandate a regressive or progressive policy? Explain your answer.