Rice farmers find that they face the market conditions il- lustrated in the table on the next page. Plot the demand and supply curves given these data. Identify the market equilibrium price and quantity. Rice farmers are well or- ganized, and have promoted rice consumption with their ad campaign "Rice is nice." Despite this effort, they are not satisfied with the market price and they successfully lobby the government for a price support of $0.80 per bushel. Show the quantity that would be supplied and the quantity that would be demanded at this government- mandated price.

Quantity

(millions of   Price per   Marginal Cost bushels)     Bushel  per Bushel

 0                                    -                             $0.00

1                                 $1.00                             0.20

2                                   0.90                             0.40

3                                   0.80                             0.60

4                                   0.70                             0.80

5                                   0.60                             1.00

6                                   0.50                             1.20