beginning from the point reached in your answer to part b, suppose a fad for bean sprout salad cuts the demand for lettuce, so that people are now willing to only buy half the lettuce, at any given price, that they would have bought before. What will happen to the equilibrium price and quantity of lettuce? Draw in new supply and/or demand curve(s), as needed, to illustrate the new situation, labing the new curve(s) and the equilibrium with the subscript 3.

4) As the sprout fad cuts lettuce farmers' income, the send a delegation to Washington asking for a bail-out. Congress responds by imposing a $24 per crate minimum price for lettuce, agreeing to buy all surplus lettuce that the farmers' can't sell for $24 a crate, using it make salads for the armed forces. How much lettuce will the government have to buy to stabalize the price at $24 per crate? How much will the government have to spend on lettuce? How much more lettuce will be produced than if the price floor had not been imposed?

To determine the effect of the sprout fad on the equilibrium price and quantity of lettuce, we need to analyze the changes in demand. According to the information given, the fad for bean sprout salad leads people to be willing to buy only half the lettuce they would have bought before, at any given price.

1. Demand Curve: The demand curve for lettuce will shift to the left, indicating a decrease in demand. We can label this new demand curve as D3.

2. Equilibrium Price: Since the demand for lettuce has decreased, there will be excess supply in the market. This will put downward pressure on the price of lettuce. As a result, the equilibrium price will decrease.

3. Equilibrium Quantity: The decrease in demand for lettuce will lead to a decrease in the equilibrium quantity of lettuce. The new equilibrium quantity of lettuce will be lower than the initial equilibrium quantity.

Now, let's move on to the second part of the question regarding the government's response to the farmers' request for a bail-out.

4) Imposing a minimum price floor of $24 per crate means that the government guarantees to buy any surplus lettuce that farmers are unable to sell at or above $24 per crate. This will stabilize the price of lettuce at $24 per crate.

To calculate the quantity of lettuce the government will need to buy to stabilize the price at $24 per crate, we need to compare the quantity demanded at that price with the quantity supplied.

In this case, the minimum price of $24 per crate is above the equilibrium price. As a result, the quantity demanded will be lower than the quantity supplied.

The quantity of lettuce the government needs to buy to stabilize the price at $24 per crate will be the difference between the quantity supplied at the price floor and the quantity demanded at that price. This is known as the surplus quantity.

To calculate the surplus quantity, we compare the quantity supplied at the price floor (Qs3) with the quantity demanded at the price floor (Qd3).

The government will have to spend on lettuce the quantity of lettuce it buys from the surplus multiplied by the price floor, which is $24 per crate.

The difference between the quantity produced with the price floor and the quantity produced without the price floor will give us the additional lettuce produced due to the price floor.

To summarize:

- The government will have to buy the surplus quantity of lettuce to stabilize the price at $24 per crate.
- The government will have to spend the surplus quantity multiplied by the price floor ($24 per crate) on lettuce.
- The additional lettuce produced due to the price floor is the difference between the quantity produced with the price floor and the quantity produced without the price floor.

Remember to refer to the graph for a visual representation of the new supply and demand curves, and the equilibrium point labeled as E3.