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Problem 02-10 (algo) Consider a market where supply and demand are given by QXS =18 + Py and Qxd = 84 - 2Py_Suppose the government
Problem 02-10 (algo) Consider a market where supply and demand are given by QXS =18 + Py and Qxd = 84 - 2Py_Suppose the government imposes a price floor of $39, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $39 per unit. Instructions: Enter your responses rounded 1o the nearest penny (two decimal places). a. Determine the cost to the government of buying firms' unsold units. % 585 b. Compute the lost social welfare ({deadweight loss) that stems from the $39 price floor
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