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Tea growers complain that the price floor has reduced their revenues and they are actually worse off than before.In response to these complaints, the government

Tea growers complain that the price floor has reduced their revenues and they are actually worse off than before.In response to these complaints, the government agrees to purchase any surplus tea at the price floor.How much will the government spend?Compared to the basic price floor, who benefits from this new policy?Who loses?Explain your answer and indicate the changes on the graph.

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Price per Ton Demand for Tea of Tea (thousands of tons) Supply of Tea (thousands of tons) $20 10 70 $19 13 62 $18 16 56 $17 18 50 $16 20 45 $15 25 35 $14 30 30 $13 35 24 $12 42 18 $11 48 15 $10 55 12

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