ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Price
10
9
8
5
A
3
2
10
250
500 750 1000
Quantity of kilos per month
1250
D
Transcribed Image Text:K
nces
W
Suppose that the government of Hatha introduces a price floor of $6.
a) What quantity of rice will buyers purchase?
kilos.
b) How much in total will buyers be paying for the amount in (a)?
c) What will be the amount of the rice surplus?
kilos.
d) What is the dollar value of this surplus?
$
H
c
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Demand is the willingness and capacity of consumers to purchase goods, while supply is the willingness and capacity of producers to SELL goods.
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