Suppose the government wants to increase the incomes of pecan farmers and decides to impose a price
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Question:
Suppose the government wants to increase the incomes of pecan farmers and decides to impose a price floor on pecans. Is this program more likely to meet the government's objective when price elasticity of demand for pecans is elastic or inelastic? Qualitatively, how will consumer, producer, and total surplus be affected if demand is inelastic? Explain.
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