Suppose in a market with Qd = 100 - SP and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government have to pay to purchase the excess in this market? A. Nothing there is no surplus B. $1,000

Suppose in a market with Qd = 100 - SP and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government have to pay to purchase the excess in this market? A. Nothing there is no surplus B. $1,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose in a market with Qd = 100 - 5P and Qs = 5P, the government imposes a price floor of $15. If the government is required to purchase any excess supply at the price floor, how much will the government
have to pay to purchase the excess in this market?
DA. Nothing there is no surplus
OB. $1,000
OC. $1,500
O D. $750

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