The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound. Quantity Demand (thousands of pounds) Quantity Supplied (thousands of pounds) Price of Lobster (per pound) $22 360 20 320 40 280 60 240 14 80 200 12 100 160 10 120 120 140 80 6. 160 40 180 Reference: Ref 2-1 Since lobster is an important source of protein and omega-3, the govermment decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound. Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60 thousand pounds because their family members are getting lobster at nursing homes. How much will the lobster program now cost the government? OA $720.000 OB. $360,00 OC 5320,00 OD. S640,000 OE $1,440.000
The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound. Quantity Demand (thousands of pounds) Quantity Supplied (thousands of pounds) Price of Lobster (per pound) $22 360 20 320 40 280 60 240 14 80 200 12 100 160 10 120 120 140 80 6. 160 40 180 Reference: Ref 2-1 Since lobster is an important source of protein and omega-3, the govermment decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound. Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60 thousand pounds because their family members are getting lobster at nursing homes. How much will the lobster program now cost the government? OA $720.000 OB. $360,00 OC 5320,00 OD. S640,000 OE $1,440.000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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QUESTION 11
The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that
allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound.
Quantity Demand
(thousands of pounds)
Quantity Supplied
(thousands of pounds)
Price of Lobster
(per pound)
$22
0.
360
20
20
320
18
40
280
16
60
240
14
80
200
12
100
160
10
120
120
8
140
80
6
160
40
4
180
Reference: Ref 2-1
Since lobster is an important source of protein and omega-3, the government decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound.
Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60
thousand pounds because their family members are getting lobster at nursing homes. How much will the lobster program now cost the government?
OA $720,000
OB. $360,00
OC 5320,00
OD. $640,000
OE $1,440.000
OUE STION 12
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