Use the following figure to answer the next questions.
-Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplus shampoo, what is the maximum possible floor price that could be imposed?
A) $1
B) $2
C) $3
D) $4
E) $5

Question

Use the following figure to answer the next  questions. 
-Refer to the accompanying figure. If the government has a budget of $300,000 to purchase surplus shampoo, what is the maximum possible floor price that could be imposed? 
A) $1 
B) $2 
C) $3 
D) $4 
E) $5

Quizplus · Accepted Answer

To find the maximum possible floor price, we need to look at the intersection of the supply curve and the budget line. In this case, the intersection occurs at a price of $3 and a quantity of 100,000 units. Any higher price would result in a lower quantity purchased, and any lower price would mean spending less money than the budget allows. Therefore, the maximum possible floor price that could be imposed is $3.

Use the Following Figure to Answer the Next Questions