Wheat Market Consumer Surplus Calculation
Not what you're looking for?
The wheat market is competitive with the market supply and demand curves:
QD=20,000,000-4,000,000P
QS=7,000,000+2,500,000P
Where QD and QS are quantity demanded and quantity supplied measured in bushels, and P=price per bushel.
A) Determine consumer surplus at the equilibrium price and quantity.
B) Assume the government has imposed a price floor at $2.25 per bushel and agrees to buy any resulting excess supply. How many bushels of wheat will the government be forced to by? Determine consumer surplus with the price floor.
Purchase this Solution
Solution Summary
This solution provides steps necessary to calculate wheat market consumer surplus.
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.