rice (per pound) Quantity Supplied (pounds) Quantity Demanded (pounds) $7 80 30 $6 70 45 $5 60 60 $4 50 75 $3 40 90 $2 30 105 $1 20 120 The equilibrium price is $ per pound. Suppose that after a successful lobbying campaign by chocolate producers, the government imposes a price floor of $7 per pound. The price floor will lead to a surplus of pounds of chocolate. After a few years, chocolate producers are not happy. They realize that compared to the market equilibrium, their total revenue has fallen by $
rice (per pound) Quantity Supplied (pounds) Quantity Demanded (pounds) $7 80 30 $6 70 45 $5 60 60 $4 50 75 $3 40 90 $2 30 105 $1 20 120 The equilibrium price is $ per pound. Suppose that after a successful lobbying campaign by chocolate producers, the government imposes a price floor of $7 per pound. The price floor will lead to a surplus of pounds of chocolate. After a few years, chocolate producers are not happy. They realize that compared to the market equilibrium, their total revenue has fallen by $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
(per pound) |
Quantity Supplied (pounds) |
Quantity Demanded (pounds) |
| $7 | 80 | 30 |
| $6 | 70 | 45 |
| $5 | 60 | 60 |
| $4 | 50 | 75 |
| $3 | 40 | 90 |
| $2 | 30 | 105 |
| $1 | 20 | 120 |
The
Suppose that after a successful lobbying campaign by chocolate producers, the government imposes a
After a few years, chocolate producers are not happy. They realize that compared to the
To compensate the chocolate producers, the government agrees to buy the entire surplus chocolate at the $7 price floor. Chocolate producers rejoice. Compared to the market equilibrium, their total revenue has now increased by $ .
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