How much will the government spend in total


The market demand and supply functions for pork are:

QD = 2,000 - 500P and QS = 800 + 100P.

To help pork producers, the U.S. Congress is considering legislation that would put a price floor at $2.25 per unit. If this price floor is implemented, how many units of pork will the government be forced to buy to keep the price at $2.25? How much will the government spend in total? How much does producer surplus increase?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: How much will the government spend in total
Reference No:- TGS045347

Expected delivery within 24 Hours