Hello, please help me with the following questions  What is the amount of shortage or surplus in the corn market as result of the price floor? If the government agrees to purchase any surplus output at $12, how much will it cost the government? If the government buys all of the farmers' output at the floor price, how many bushels of corn will it have to purchase and how much will it cost the government

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Hello, please help me with the following questions 

  1. What is the amount of shortage or surplus in the corn market as result of the price floor?
  2. If the government agrees to purchase any surplus output at $12, how much will it cost the government?
  3. If the government buys all of the farmers' output at the floor price, how many bushels of corn will it have to purchase and how much will it cost the government?
Table 4-5 below contains information about the corn market. An agricultural price floor is a price that the government guarantees
farmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel.
Price per Bushel
(dollars)
$2
Quantity Demanded (bushels) Quantity Supplied (bushels)
40,000
4
34,000
4,000
28,000
8,000
8
24,000
16,000
10
20,000
20,000
12
18,000
28,000
36,000
14
12,000
16
6,000
40,000
Transcribed Image Text:Table 4-5 below contains information about the corn market. An agricultural price floor is a price that the government guarantees farmers will receive for a particular crop. Suppose the federal government sets a price floor for corn at $12 per bushel. Price per Bushel (dollars) $2 Quantity Demanded (bushels) Quantity Supplied (bushels) 40,000 4 34,000 4,000 28,000 8,000 8 24,000 16,000 10 20,000 20,000 12 18,000 28,000 36,000 14 12,000 16 6,000 40,000
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