A legal price floor and revenues

Assume that the U.S. wheat market is firstly into equilibrium on S₀D₀. Now assume the government institutes a legal price floor at P₃ per bushel of wheat. When the government does nothing else, one outcome will be such: (w) American dieters will determine it less costly to stay on a low carbohydrate diet. (x) farmers' annual total revenues (price × quantity) will change from 0P₂dQ₂ to 0P₃aQ₁. (y) yearly shortages of wheat equal to distance bf will be created (z) total revenue yearly for farmers will fall from 0P₄gQ₄ to 0P₃eQ₃.

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