Suppose market demand and supply are given by Q^d = 100 − 2P and Q^s = 5 + 3P.If the government sets a price floor of $30 and agrees to purchase all surplus at $30 per unit,the total cost to the government will be:

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To calculate the total cost to the government, we first need to determine the quantity supplied and demanded at the price floor of $30. Using the given demand and supply equations:Demand: $Q_d = 100 - 2P$Supply: $Q_s = 5 + 3P$At $P = $30$:$Q_d = 100 - 2(30) = 100 - 60 = 40$$Q_s = 5 + 3(30) = 5 + 90 = 95$The surplus is the difference between quantity supplied and quantity demanded at the price floor: $95 - 40 = 55$.The total cost to the government for purchasing the surplus at $30 per unit is $55 units \times $30 = $1,650$.

Suppose Market Demand and Supply Are Given by Qd =

Suppose Market Demand and Supply Are Given by Q^d =