Suppose the demand for wheat, in million bushels, can be expressed as QD=2900 - 125P and the supply can be expressed as QS = 1460 + 115P, and also suppose that the government decides to subsidize wheat production by paying a $1 a bushel subsidy. The price received by the seller and the quantity sold before the subsidy were _____________________and after the subsidy are ____________________________.

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     $6 and 2,150 million bushels; $5.52 and 2,150 million bushels.
      $6 and 2,150 million bushels; $6 and 2,210 million bushels.
      $6 and 2,150 million bushels; $6.52 and 2,210 million bushels.
      $6 and 2,150 million bushels; $6.52 and 2,150 million bushels.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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$6 and 2,150 million bushels; $6.52 and 2,210 million bushels.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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