Maurice Tutor

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Category > Computer Science Posted 16 Jul 2017 My Price 2.00

competitive equilibrium price

3.7 Suppose that the government sets a price floor for milk that is above the competitive equilibrium price and that the government does not purchase any surplus milk.

a. Draw a graph showing this situation. Be sure your graph shows the competitive equilibrium price, the

price floor, the quantity that would be sold in competitive equilibrium, and the quantity that would be sold

with the price floor.

b. Compare the economic surplus in this market when there is a price floor and when there is not.

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Maurice Tutor
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Status NEW Posted 16 Jul 2017 09:07 PM My Price 2.00

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