Suppose in a market with Qd = 100 - SP and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government have to pay to purchase the excess in this market? A. Nothing there is no surplus B. $1,000

Suppose in a market with Qd = 100 - SP and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government have to pay to purchase the excess in this market? A. Nothing there is no surplus B. $1,000

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand, And Government Policies

Section: Chapter Questions

Problem 10PA

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Question

Suppose in a market with Qd = 100 - 5P and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government
have to pay to purchase the excess in this market?
DA. Nothing there is no surplus
OB. $1,000
OC. $1,500
O D. $750

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