Consider a market where supply and demand are given by QXS = -18 + Px and Qxd=84 - 2Px. Suppose the government imposes aunits consumers do not buy at the floor price of $39 per unit.price floor of $39, and agrees to purchase and discard any andInstructions: Enter your responses rounded to the nearest penny (two decimal places).a. Determine the cost to the government of buying firms' unsold units.$ 585.00✔b. Compute the lost social welfare (deadweight loss) that stems from the $39 price floor.$ 25.00

Consider a market where supply and demand are given by QXS = -18 + Px and Qxd=84 - 2Px. 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 to the nearest penny (two decimal places). a. Determine the cost to the government of buying firms' unsold units. $ 585.00 b. Compute the lost social welfare (deadweight loss) that stems from the $39 price floor. $ 25.00

Consider a market where supply and demand are given by QXS = -18 + Px and Qxd=84 - 2Px. 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 to the nearest penny (two decimal places). a. Determine the cost to the government of buying firms' unsold units. $ 585.00 b. Compute the lost social welfare (deadweight loss) that stems from the $39 price floor. $ 25.00

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 6P

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