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Supply 500 250 50 Demand 1 million 2 million 3 million Qty (tons) 2011, the Thai government imposed a price control on rice to protect the income of farmers. Suppose the price control artificially raised price of rice from $250/ton to $500/ton, use the graph to explain th olicy and its impact on: a) the market, and b) Government spending if the government has committed to buying up all the excess rice.

Supply 500 250 50 Demand 1 million 2 million 3 million Qty (tons) 2011, the Thai government imposed a price control on rice to protect the income of farmers. Suppose the price control artificially raised price of rice from $250/ton to $500/ton, use the graph to explain th olicy and its impact on: a) the market, and b) Government spending if the government has committed to buying up all the excess rice.

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 14CQ
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Q: Supply 500 250 50 Demand 1 million 2 million 3 million Qty (tons) In 2011, the Thai government imposed a price control on rice to protect the income of farmers. Suppose the price control artificially raised price of rice from $250/ton to $500/ton, use the graph to explain the policy and its impact on: a) the market, and b) Government spending if the government has committed to buying up all the excess rice.
Transcribed Image Text:Q: Supply 500 250 50 Demand 1 million 2 million 3 million Qty (tons) In 2011, the Thai government imposed a price control on rice to protect the income of farmers. Suppose the price control artificially raised price of rice from $250/ton to $500/ton, use the graph to explain the policy and its impact on: a) the market, and b) Government spending if the government has committed to buying up all the excess rice.
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