Question: Consider the information in Problem 4-7 and your answers to that question. Suppose that the market clearing price of Pakistani wheat in the absence of

Consider the information in Problem 4-7 and your answers to that question. Suppose that the market clearing price of Pakistani wheat in the absence of price supports is equal to $0.10 per kilogram. At this price, the quantity of wheat demanded is 12 billion kilograms. Under the government wheat price-support program, how much more is spent each year on wheat harvested in Pakistan than otherwise would have been spent in an unregulated market for Pakistani wheat?

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