f a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy ___

Question

saveliy_v [14]

3 years ago

8

f a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy ___

__ units of the good and spend a total amount of _____ on its purchase.

Business

1 answer:

zlopas [31] · Answer 1 · 2022-01-11T07:47:37+03:00

If a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy 10 units of the good and spend a total amount of $150 on its purchase.

Explanation:

According to the given figure, a surplus of the good will result if the price is $15. The government has a total amount of $150. If it decides to spend the total amount on purchasing, the government should buy 10 units of goods.

As the price of each good is $15 and the total amount with the government is $150.

On calculating with the given information,

150/15= 10

So the government can buy 10 units of goods for the total amount of $150.