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Consider a market where supply and demand are given by !=16+! and !#=92 2!. Suppose the government imposes a price floor of $40 and agrees

Consider a market where supply and demand are given by !"=16+! and !#=92 2!. Suppose the government imposes a price floor of $40 and agrees to purchase and discard any and all units consumers do not buy at the floor price of $40 per unit. A) Determine the cost to the government of buying firms' unsold units. B) Compute the lost social welfare (deadweight loss) that stems from the $40 price floor.

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