Please answer part (D).
1. Much of the demand for U.S. agricultural output comes from other countries. Suppose that the total demand for wheat in the U.S. wheat market is QDT = 3,244 – 283P, where P is the
a. U.S. farmers are concerned about this drop in export demand. How does this drop in export demand impact the market price of wheat in the U.S.? Do farmers have much reason to worry? Explain/support your answer.
b. How does the reduction in export demand affect U.S.
c. Now, suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? How much would this cost the government?
d. How does the government purchase of wheat impact U.S. consumer surplus in the wheat market? Illustrate and explain.
Please answer part (D). Thanks! (See answers for A-C at https://www.bartleby.com/questions-and-answers/much-of-the-demand-for-u.s.-agricultural-output-comes-from-other-countries.-suppose-that-the-total-d/960086e0-8b73-463c-9a32-a14adacf2100)
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