The accompanying table shows the quantity of cheese demanded by and supplied to a city in a given week.

a. Compute the value of consumer surplus and producer surplus when this market is in equilibrium. 

b. Suppose a price floor of $1,000 per unit is imposed on this market. Compute the value of consumer surplus and producer surplus if the government takes no other action besides setting the price floor. 

c. Now suppose that the government supports the price floor by buying up the surplus cheese created by the price floor. How much would it cost the government to buy the surplus cheese? What would be the value of consumer surplus and producer surplus under this policy?

d. Who is helped by the imposition of the price floor in this market?

e. Who is hurt by the imposition of the price floor in this market?

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Quantity Demanded (units per week) 0 100 200 300 400 500 600 Price Per Unit ($) 1,300 1,200 1,100 1,000 900 800 700 Quantity Supplied (units per week) 1,200 1,100 1,000 900 800 700 600 Quantity Demanded (units per week) 700 800 900 1,000 1,100 1,200 1,300 Price Per Unit ($) 600 500 400 300 200 100 0 Quantity Supplied (units per week) 500 400 300 200 100 0 0