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The market demand and supply functions for pork are: QD = 2,000 - 500P and QS = 800 + 100P. To ...

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The market demand and supply functions for pork are: QD = 2,000 - 500P and QS = 800 + 100P. To ...

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?

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Microeconomics

Edition: 8^th

Author: Pindyck

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Tristan F.

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