Question

Price $20 18 16 14 12 10 8 6 4 2 0 Figure 4-3 10 20 30 40 50 60 70 80 90 100 Quantity 19. Refer to the Figure 4-3. To help the producers, suppose the government sets a guaranteed price of $12. Suppose the government will not be able to buy any surplus but is willing to pay a subsidy. How much is the cost of this subsidy to the government? a. $400 b. $560 c. $240 d. $420 e. None of the above 20. Refer to the Figure 4-3. Suppose instead of the price floor, the government sets a quota of 30 units. How much is the cost of this quota to the government? a. $420 b. $300 c. $ Zero d. $360 e. None of the above 6

          Price
$20
18
16
14
12
10
8
6
4
2
0
Figure 4-3
10 20 30 40 50 60 70 80 90 100 Quantity
19. Refer to the Figure 4-3. To help the producers, suppose the government sets a guaranteed price of
$12. Suppose the government will not be able to buy any surplus but is willing to pay a subsidy.
How much is the cost of this subsidy to the government?
a. $400
b. $560
c. $240
d. $420
e. None of the above
20. Refer to the Figure 4-3. Suppose instead of the price floor, the government sets a quota of 30
units. How much is the cost of this quota to the government?
a. $420
b. $300
c. $ Zero
d. $360
e. None of the above
6

Price
20
18
16
14
12
10
8
6
4
2
0
Figure 4-3
10 20 30 40 50 60 70 80 90 100 Quantity
19. Refer to the Figure 4-3. To help the producers, suppose the government sets a guaranteed price of12. Suppose the government will not be able to buy any surplus but is willing to pay a subsidy.
How much is the cost of this subsidy to the government?
a. 400
b.560
c. 240
d.420
e. None of the above
20. Refer to the Figure 4-3. Suppose instead of the price floor, the government sets a quota of 30
units. How much is the cost of this quota to the government?
a. 420
b.300
c. Zero
d.360
e. None of the above
6

Added by Dana H.

Question

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