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. What is the size of the consumer surplus?
A. $4 billion
B. $8 billion
C. $10 billion
D. $6 billion
A. $4 billion
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A member of a cartel earns more profits by producing more than its quota and selling at a price higher than the cartel's price
Indicate whether the statement is true or false
Economic profit is defined as
a. total revenue minus implicit costs b. total revenue plus explicit costs c. total revenue plus implicit costs d. wages plus interest minus rent e. total revenue minus implicit and explicit costs
Which of the following will discourage investment?
What will be an ideal response?
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. If this farmer produces the profit-maximizing quantity when the market price is ________, her profit is $0.
A. $24 B. $20 C. $18 D. $4