Price support for grains
In a country, the demand function for grains is Qd = 28 −3 p, and supply function is Qs = 2p + 3. The government considers implementing a support price of $6 for grains and promises to purchase the extra supply at this price.
a) What is the market equilibrium price and quantity?
b) What is the quantity supplied by the farmers, the quantity demanded by the market, and the quantity purchased by the government?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/economic-policy/price-support-for-grains-jklg