The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. How much wheat goes to waste under the program?
A. 10 billion bushels per year
B. 4 billion bushels per year
C. 6 billion bushels per year
D. No wheat goes to waste.
C. 6 billion bushels per year
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