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Due to the pandemic consumers and suppliers are not satisfied with the prices and quantities determined by market demand and supply. Their dissatisfaction required government
Due to the pandemic consumers and suppliers are not satisfied with the prices and quantities determined by market demand and supply. Their dissatisfaction required government to intervene to influence prices and quantities in the market. Suppliers propose the employment of a price floor set at R11 as opposed to the suggested price ceiling of R3 by consumers. Suppose that the government intervenes by aid of a price floor at R11, calculate the value of the total surplus or shortage quantity in the market?
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