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a) What is the prepent equabeium proce ard quaredy purchased in tha market? Pricests Buartuty grurthated. b) How much, in total, are rice buyers paying for this quantity? 5. million c) Suppose that the govemment introduces a price floor of $7 per kilo. How much, in total, will rice buyers now be paying? 5 million d) As a result of the price floor, what will be the total amount of the surplus? Surplus What will be the dollar amount of this surplus? Amount of surplus: $ million Who will be responsible for buying this surplus, the government or the farmers? Buying the surplus amount is the responsibility of the: Suppose that the govemment is concerned with the size of the surplus and is thinking of repiacing the price floor with a production quota of 4 million kilos. e) if in did so, what would be the new price. quantity, and total revenue of farmers? Price 5 Quantity purchased million kilos: Total revenue: $ Quantity purchased: million kilos Total revenue: $ million Aiternatively, the government is also considering introducing a $3 per kilo subsidy for the rice farmers. f) If it does introduce the subsidy, what would be the new price, quantity, and total revenue of farmers? New price: $ Quantity. million kilos Total revenue: $ million 9) Under which scheme - a price floor, a quota, or a subsidy-will farmers receive the most total revenue

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