Consider the market shown in the graph below. a. Compute the consumer surplus. b. Compute the producer
Question:
a. Compute the consumer surplus.
b. Compute the producer surplus.
Now assume that government puts a price floor on this product at $20 a unit.
c. Compute the new consumer surplus.
d. Compute the new producer surplus.
e. What group would tend to have their advocates or lobbyists support price floors?
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