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Consider a market where supply and demand are given by QXS = 1 8 + PX and QXd = 8 1 2 PX . Suppose
Consider a market where supply and demand are given by QXS PX and QXd PX Suppose the government imposes a price floor of $ and agrees to purchase and discard any and all units consumers do not buy at the floor price of $ per unit. Instructions: Enter your responses rounded to the nearest penny two decimal places a Determine the cost to the government of buying firms unsold units. b Compute the lost social welfare deadweight loss that stems from the $ price floor.
Consider a market where supply and demand are given by QXS PX and QXd PX Suppose the government imposes a price floor of $ and agrees to purchase and discard any and all units consumers do not buy at the floor price of $ per unit.
Instructions: Enter your responses rounded to the nearest penny two decimal places
a Determine the cost to the government of buying firms unsold units.
b Compute the lost social welfare deadweight loss that stems from the $ price floor.
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