Suppose market demand and supplyare given by Qd = 100 – 2P and Qs = 5+ 3P. If the government sets a price%3Dfloor of $30 and agrees to purchaseall surplus at P30 per unit, the totalcost to the government will be: *a. 55ОБ.1,200О с. 1,650O d. 2,850

At price 30, Quantity demanded can be found out by substituting P = 30 in the demand function. At…

Suppose market demand and supply are given by Qd = 100 – 2P and Qs = 5 + 3P. If the government sets a price floor of $30 and agrees to purchase all surplus at P30 per unit, the total cost to the government will be: * а. 55 O b. 1,200 О с. 1,650 d. 2,850

Suppose market demand and supply are given by Qd = 100 – 2P and Qs = 5 + 3P. If the government sets a price floor of $30 and agrees to purchase all surplus at P30 per unit, the total cost to the government will be: * а. 55 O b. 1,200 О с. 1,650 d. 2,850

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose market demand and supply
are given by Qd = 100 – 2P and Qs = 5
+ 3P. If the government sets a price
%3D
floor of $30 and agrees to purchase
all surplus at P30 per unit, the total
cost to the government will be: *
a. 55
ОБ.1,200
О с. 1,650
O d. 2,850

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