Exhibit 16-1
-Consider Exhibit 16-1. Considering government expenditures on surplus milk but ignoring storage costs, how much do consumers pay per gallon for the quantity purchased at the support price?

Question

Exhibit 16-1 
-Consider Exhibit 16-1. Considering government expenditures on surplus milk but ignoring storage costs, how much do consumers pay per gallon for the quantity purchased at the support price?

Quizplus · Accepted Answer

At the support price of $4.00 per gallon, the government purchases the surplus milk. Consumers pay the support price of $4.00 per gallon for the quantity purchased at the support price.

Exhibit 16-1 -Consider Exhibit 16-1. Considering Government Expenditures on Surplus Milk but Surplus