The law of demand is illustrated by a demand curve that is:

The government's policy of reducing payments for physicians' services has generated a relative

A) increase in the number of physicians in the program. B) reduction in the number of physicians in the program. C) reduction in the demand for medical services. D) increase in the income of the physicians remaining in the program.

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 voluntary production reduction program to achieve their goal. What is the size of the deadweight loss from the program?

A. $1.5 billion B. $3 billion C. $4.5 billion D. $18 billion