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The annual demand for wheat in Canada is given by the function Q d = 200 7.5 P where Q is
quantity (in millions of bushels) and P is the market price per bushel of wheat. The domestic
supply is given by the curve Q s = 100 + 5 P . d) If the government of Canada imposes a $10
price support. Compute the change in consumer and producer surplus and the deadweight loss.

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The annual demand for wheat in Canada is given by the function Qd-2007.docx

  • 1. The annual demand for wheat in Canada is given by the function Q d = 200 7.5 P where Q is quantity (in millions of bushels) and P is the market price per bushel of wheat. The domestic supply is given by the curve Q s = 100 + 5 P . d) If the government of Canada imposes a $10 price support. Compute the change in consumer and producer surplus and the deadweight loss.