The Market Demand Function for Wheat Is Q^d=10-2P and the Market

The market demand function for wheat is Q^d=10-2P and the market supply function is Q^s=4P-2 , both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price support program to achieve their goal. How much wheat must the government buy?

A) 10 billion bushels per year
B) 4 billion bushels per year
C) 6 billion bushels per year
D) None

Correct Answer:

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