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10 Dec 2018
Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 76 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 per unit.
Instructions: Enter your responses rounded to the nearest penny (two decimal places).
a. Determine the cost to the government of buying firmsâ unsold units.
b. Compute the lost social welfare (deadweight loss) that stems from the $35 price floor
Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 76 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 per unit.
Instructions: Enter your responses rounded to the nearest penny (two decimal places).
a. Determine the cost to the government of buying firmsâ unsold units.
b. Compute the lost social welfare (deadweight loss) that stems from the $35 price floor
larryrambo777Lv10
26 Mar 2023
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Trinidad TremblayLv2
11 Dec 2018
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