Suppose that the USDA expects that 53.3 billion bushels of soybeans will be produced this year...

1. Derive the linear supply and demand curves for this equilibrium.

2. What quota is required to increase the soybean price to $9.25/bushel? And what is the economic cost of this solution (i.e., what is the change in producer surplus and change in consumer surplus, and what is the sum of these changes)?

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Rahul Sunny answered 1 year ago

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