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Explain clearly The federal government has decided that employment in this industry should increase by 100 percent. Assuming that employment is proportional to output, it

Explain clearly

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The federal government has decided that employment in this industry should increase by 100 percent. Assuming that employment is proportional to output, it therefore plans to purchase 200 machines regardless of price. The government intends to give away these machines to third world countries as part of Canada's foreign aid and prohibits their resale. Price Figure 1 Price Figure 2 Price Figure 3 35 35 35 32.5- 32.5 30 30 30 27.5 27.5 25 25 25 22.5 22.5 20- 20 - 20 G 17.5 . 17.5 15 15 15 12.5 12.5 10 10 10 7.5- C 7.5 5 5 2.5 2.5 B 100 200 300 400 500 100 200 300 400 500 100 200 300 400 500 Quantity Quantity Quantity By how much did the equilibrium output of the industry increase? Why does this increase fall short of the government's target of causing the industry to raise the equilibrium output by 200 machines

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