$\begin{array}{ccc}
\begin{array}{c}
\text { Price per } \
\text { Bushel }
\end{array} & \begin{array}{c}
\text { Quantity of Bushels } \
\text { Demanded per Month }
\end{array} & \begin{array}{c}
\text { Quantity of Bushels } \
\text { Supplied per Month }
\end{array} \
\$2&800&400\
3 & 700 & 500 \
4 &600 & 600 \
5 &500 & 700 \
6 & 300 & 800\
\end{array}$
-Refer to Table 3.1. To maintain a $5 support price, government must
A) sell 200 bushels of wheat at revenues totaling $800
B) sell 700 bushels of wheat are revenues totaling $3,500
C) purchase 200 bushels of wheat at a total cost of $1,000
D) purchase 500 bushels of wheat at a total cost of $2,500

Question

$\begin{array}{ccc}
\begin{array}{c}
\text { Price per } \
\text { Bushel }
\end{array} & \begin{array}{c}
\text { Quantity of Bushels } \
\text { Demanded per Month }
\end{array} & \begin{array}{c}
\text { Quantity of Bushels } \
\text { Supplied per Month }
\end{array} \
\$2&800&400\
3 &  700 & 500 \
4 &600 & 600 \
5 &500 & 700  \
6 &  300 & 800\
\end{array}$
-Refer to Table 3.1. To maintain a $5 support price, government must
A) sell 200 bushels of wheat at revenues totaling $800
B) sell 700 bushels of wheat are revenues totaling $3,500
C) purchase 200 bushels of wheat at a total cost of $1,000
D) purchase 500 bushels of wheat at a total cost of $2,500

Quizplus · Accepted Answer

At a $5 support price, the quantity of bushels demanded per month is 500, while the quantity of bushels supplied per month is 700. The government must purchase the surplus of 200 bushels to maintain the support price, costing $1,000 (200 bushels * $5 per bushel).