Question
Hi, I'm trying to check the answer for these 2 questions. The professor keeps saying it's incorrect. G.)The Emperor of Gondwanaland must collect taxes from
Hi, I'm trying to check the answer for these 2 questions. The professor keeps saying it's incorrect.
G.)The Emperor of Gondwanaland must collect taxes from the people to pay for the purchases of surplus gosum berries by the Chairman of Production's Office. As a result, total surplus (producer plus consumer) is reduced by the amount the Chairman of Production's Office spent on buying surplus gosum berries. Using your answers for problems d, e, and f above, what is the total surplus when there is a price floor? Show your calculations.
$4,500 + $16,500 = $21,000
$28,000 - $21,000 = $7,000
H.)How does this compare to the total surplus without a price floor from question c above? Is it more, or less, and by how much?
$25,000 - 7,000 = $18,000 (Less)
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