Multiple Choice
Suppose that the market for corn is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as ; the supply curve can be expressed as . Quantity is expressed in millions of bushels. Now suppose that the federal government imposes a price floor of $3 per bushel of corn. What is the dead-weight loss (per million bushels) associated with the price floor when the least efficient producers are active?
A) $9.375
B) $2.25.
C) $1.
D) $0.63.
Correct Answer:

Verified
Correct Answer:
Verified
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