The wheat market is competitive with the market supply and demand curves:
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.© BrainMass Inc. brainmass.com March 4, 2021, 6:24 pm ad1c9bdddf
This solution provides steps necessary to calculate wheat market consumer surplus.