1981 supply:Qs=1800+240P 1981 Demand:Qp=3550-266P P0=3.46Q0=2630 If government buy an amount of the wheat to increase the price to $3.70, Qs=Qp+Qg 1800+240P=3550-266P+Qg Qg=506P-1750=506×3.70-1750=1221981 supply: QS= 1800 + 240P 1981 Demand: QD=3550 - 266P P0 = 3.46 Q0=2630 If government buy an amount of the wheat to increase the price to $3.70, QS = QD + Qg 1800 + 240P = 3550 - 266P +Qg Qg = 506P –1750 = 506  3.70 –1750 = 122