Exhibit 16.2

-Refer to Exhibit 16.2,which shows the market for milk.Suppose the government introduces a variety of policies that set floor prices for milk at $3.00.Considering government expenditures on surplus milk but ignoring storage costs,the consumers pay _____ per gallon for the quantity purchased at the support price.

Question

Exhibit 16.2
 
-Refer to Exhibit 16.2,which shows the market for milk.Suppose the government introduces a variety of policies that set floor prices for milk at $3.00.Considering government expenditures on surplus milk but ignoring storage costs,the consumers pay _____ per gallon for the quantity purchased at the support price.

Quizplus · Accepted Answer

The consumers pay the support price of $3.00 per gallon for the quantity of milk purchased at the support price, as the government's policy ensures that the price does not fall below this level.

Exhibit 16.2 -Refer to Exhibit 16.2,which Shows the Market for Milk.Suppose the Market