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Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the

Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the following table.

Thousands of Bushels Demanded

Price per Bushel

Thousands of Bushels Supplied

85 $3.40 72
80 3.70 73
75 4.00 75
70 4.30 77
65 4.60 79
60 4.90 81

Suppose that the government establishes a price ceiling of $3.70 for wheat.

a. What might prompt the government to establish this price ceiling?

multiple choice 1

A. To use it as a form of trade barrier

B. To encourage production

C. To control food prices

D. To use it as income support for farmers

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