Question

The price of wheatwould be â$nothingper bushelif there was no price support. In order to maintain the priceâ support, the government will have to purchase nothingbushelsof wheat.

Answer 1

Answer:

$5, 200 bushels of wheat

Explanation:

From the diagram the price support was at $6 per bushel, however if the government removes the price support or if there was no price support, then the price of the wheat will be $5 for a bushel. And in order to maintain the price support, from the diagram below, it is expected that the government would have to purchase 200 bushels of wheat.