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Consider a market where supply and demand are given by Q X S = -18 + P X and Q X d = 90 -

Consider a market where supply and demand are given by QXS= -18 + PXand QXd= 90 - 2PX. Suppose the government imposes a price floor of $41, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $41 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 $41 price floor.

$

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