The federal government often aids farmers through systems of price supports. Suppose that the government sets...

 

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The federal government often aids farmers through systems of price supports. Suppose that the government sets a price support of $7 per pound in the rice market. The graph on the right shows this situation. The price of rice would be $ per pound if there was no price support. In order to maintain the price support, the government will have to purchase pounds of rice. The cost of this program to the government is $ The federal government often aids farmers through systems of price supports. Suppose that the government sets a price support of $7 per pound in the rice market. The graph on the right shows this situation. The price of rice would be $ per pound if there was no price support. In order to maintain the price support, the government will have to purchase pounds of rice. The cost of this program to the government is $

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