-Refer to the graph above to answer this question.Suppose that the government imposes a price floor of $6.What will be the cost to the government of purchasing any surplus?

Question

Quizplus · Accepted Answer

A price floor set above the equilibrium price will result in a surplus because the quantity supplied will exceed the quantity demanded. The cost to the government for purchasing this surplus is calculated by multiplying the surplus quantity by the price floor. If the graph (which is not visible in this context) indicates a surplus quantity of 15 units at a price floor of $6, the cost to the government would be 15 units * $6/unit = $90.

-Refer to the Graph Above to Answer This Question