The demand function for corn is q = 200 - p and the supply function is q

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The demand function for corn is q = 200 - p and the supply function is q = 50+0.5p.

(a)What are the quilibrium prices and quantities?

(b) The government sets the price of corn at 150 and agrees to purchase and destroy any excess supply of corn at that price. How much money does it cost the government to buy this corn?

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Mar 01, 2024 04:40 AM

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The demand function for corn is q = 200 - p and the supply function is q

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Equilibrium Analysis and Government Intervention in the Corn Market Part a Equilibrium Prices and Quantities Equate demand and supply to find equilibr... View the full answer

Intermediate Microeconomics

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