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Satsume Satsume
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6 years ago
The U.S. Department of Agriculture is interested in analyzing the domestic market for corn.  The USDA's staff economists estimate the following equations for the demand and supply curves:
   Qd = 1,600 - 125P
   Qs = 440 + 165P

Quantities are measured in millions of bushels; prices are measured in dollars per bushel.

a.   Calculate the equilibrium price and quantity that will prevail under a completely free market.
b.   Calculate the price elasticities of supply and demand at the equilibrium values.
c.   The government currently has a $4.50 bushel support price in place.  What impact will this support price have on the market?  Will the government be forced to purchase corn under a program that requires them to buy up any surpluses?  If so, how much?
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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boransalboransal
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6 years ago
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#2
4 years ago
Thank you
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#3
4 years ago
THANK YOU
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