Calculate the loss in consumer surplus

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Reference no: EM131101439

The supply and demand curves for corn are as follows: QD = 3,750 - 725P QS = 920 + 690P, where Q = millions of bushels and P = price per bushel. a. Calculate the equilibrium price and quantity that would prevail in the free market. b. The government has imposed a $2.50 per bushel support price. How much corn will the government be forced to purchase? c. Calculate the loss in consumer surplus that would occur under the support program.

Reference no: EM131101439

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