=+b. Suppose the government sets a target price of $5 per bushel for any quantity supplied up

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=+b. Suppose the government sets a target price of $5 per bushel for any quantity supplied up to 1,000 bushels. How many bushels of corn are purchased by consumers and at what price? By the government? How much does the program.

cost the government? How much revenue do corn farmers receive?

c. Which of these programs (in parts a and

b) costs corn consumers more? Which program costs the government more? Explain.

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Economics

ISBN: 9781319066604

5th Edition

Authors: Robin Krugman, Paul Wells

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