Exhibit 4-11 Data on supply and demand $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Bushels demanded } \
\text { per month }
\end{array} & \begin{array} { c }
\text { Price per } \
\text { bushel }
\end{array} & \begin{array} { c }
\text { Bushels supplied } \
\text { per month }
\end{array} \
\hline 45 & \$ 5 & 77 \
50 & 4 & 73 \
56 & 3 & 68 \
61 & 2 & 61 \
67 & 1 & 57 \
\hline
\end{array}$$ Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A) Buyers would want to purchase more wheat than is supplied.
B) Buyers would not purchase all of the wheat grown.
C) Shortage of wheat would increase the price of wheat.
D) Farmers would grow less wheat.

Question

Exhibit 4-11 Data on supply and demand $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Bushels demanded } \
\text { per month }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { bushel }
\end{array} & \begin{array} { c } 
\text { Bushels supplied } \
\text { per month }
\end{array} \
\hline 45 & \$ 5 & 77 \
50 & 4 & 73 \
56 & 3 & 68 \
61 & 2 & 61 \
67 & 1 & 57 \
\hline
\end{array}$$ Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A) Buyers would want to purchase more wheat than is supplied.
B) Buyers would not purchase all of the wheat grown.
C) Shortage of wheat would increase the price of wheat.
D) Farmers would grow less wheat.

Quizplus · Accepted Answer

At a price floor of $4 per bushel, the quantity of wheat supplied (73 bushels) exceeds the quantity demanded (50 bushels), leading to a surplus where not all wheat grown is purchased.

Exhibit 4-11 Data on Supply and Demand Which of the Following Would Occur If the Government Imposed