Open the link above to see a diagram that displays the market for salmon with no government intervention. Suppose the government sets a price floor of $10. 1. After the price floor is imposed, how many units of salmon are traded (bought and sold) in the market legally? $ 10 2. After the price floor is imposed, how much is the dead weight loss? $ 160 3. After the price floor is imposed, how much is the consumer surplus? $ 80 4. After the price floor is imposed, how much is the producer surplus? $ 60

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter6: Supply, Demand And Government Policies
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Market for Salmon
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10
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4
10
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60
Quantity
Price
2.
Transcribed Image Text:Market for Salmon 12 10 8 4 10 20 30 40 50 60 Quantity Price 2.
CS2.jpg
Open the link above to see a diagram that displays the market for salmon with no government
intervention. Suppose the government sets a price floor of $10.
1. After the price floor is imposed, how many units of salmon are traded (bought and sold) in the
market legally? $ 10
2. After the price floor is imposed, how much is the dead weight loss? $ 160
3. After the price floor is imposed, how much is the consumer surplus? $ 80
4. After the price floor is imposed, how much is the producer surplus? $ 60
Transcribed Image Text:CS2.jpg Open the link above to see a diagram that displays the market for salmon with no government intervention. Suppose the government sets a price floor of $10. 1. After the price floor is imposed, how many units of salmon are traded (bought and sold) in the market legally? $ 10 2. After the price floor is imposed, how much is the dead weight loss? $ 160 3. After the price floor is imposed, how much is the consumer surplus? $ 80 4. After the price floor is imposed, how much is the producer surplus? $ 60
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