Price per bushel Quantity demanded Quantity supplied $0 3 4 5 6 Draw the demand and supply curves for corn What is the equilibrium price? The equilibrium quantity? Suppose the government now imposes a price floor at $4 per bushel Show the effect of this program graphically How large is the surplus of corn? With the price floor, how much farmers receive for their corn? How much would they have received if there were no price floor? If the government buys all the surplus wheat, how much will it spend? Problems 5–9 are based on the following hypothetical demand and supply curves for apartments Number of Apts Number of Apts Rent/Month Demanded/Month Supplied/Month $0 120,000 200 100,000 20,000 400 80,000 40,000 600 60,000 60,000 800 40,000 80,000 Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 228