The following graph shows the market for wool. Suppose the government introduces a variety of policies that set floor prices for wool at $6. If the government decides to buy the surplus wool generated by the price floor, then they have to spend _____ per year on wool.
Figure 16.2

A) $540 million
B) $360 million
C) $600 million
D) $900 million
E) $300 million
Correct Answer:
Verified
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