Q1. Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 82 - 2PX. Suppose the government imposes a price floor of $37, and agrees to purchase any and all units consumers do not buy at the floor price of $37 per unit.
a. Determine the cost to the government of buying firms' unsold units.
b. Compute the lost social welfare (deadweight loss) that stems from the $37 price floor.
Q2. Choose a deviant behavior to research. Locate references (e.g., current news stories, pop culture, and reality TV shows) that convey deviant behavior being accepted or rejected/scorned.
Write an essay of around 700 words, summarizing your conclusions. Comprise the following:
1. What was the deviant behavior?
2. What were the demographics of the group that witnessed the behavior?
3. How did the group react to the behavior?
4. How did the group attempt to control this deviant behaviour?