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kobusy [5.1K]
3 years ago
8

If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total

support payments to producers would be
Business
1 answer:
vovikov84 [41]3 years ago
8 0
If the government agreed to purchase the surplus output and introduced a guaranteed price floor of $40, then most likely the government <span>'s total support payments to producers would be $4000 per week. We have a 180 quantity demanded and we have 280 quantity supplied, we will get the surplus by subtracting the supply by demand. So, 280 - 180 = 100 x price of 40 = 4000.</span>
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