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What would the marketing loan program cost with a NR Loan Rate of $7.44/bushel? QUESTION 37 The Secretary of Agriculture is concerned about the costs

What would the marketing loan program cost with a NR Loan Rate of $7.44/bushel?

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QUESTION 37 The Secretary of Agriculture is concerned about the costs of three possible wheat programs: (1) a Non-Recourse Loan (government surplus purchase) Program; (2) a Marketing Loan Program; and (3) a Price Loss Coverage program. Answer his questions below in Questions 37 through 39 given the information below. Information given: Price elasticity of supply 10.25 Equilibrium price with no policy $6.20/bushel Price elasticity of demand -1.25 Equilibrium quantity with no policy 10.00 billion bushels

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