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1.The US government heard about Canada's government sponsored cartel for Maple Syrup and decided to do a similar thing for corn. The market equilibrium price for corn is $4.50 per bushel and the equilibrium quantity is 2.36 billion bushels. President Trump took an economic class in college, so he decides to put a price floor on corn of $3.50 per bushel.
Will this price floor help cushion the corn industry from market fluctuations in production due to bad weather or changing demand like the Maple syrup cartel in Canada? Why or why not.
Draw the Supply and Demand graph with the price floor. Remember to label all points and axes.
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