Let's assume that the government decides that consumption of hamburger meat is harmful to the environment. As a result, they decide to implement a price floor of $10 on one pound of hamburger meat. The current market price is around $4. What will be the end result on consumer surplus? What will be the end result on producer surplus? Do you feel this would an effective policy in curbing hamburger consumption?

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1 Lets go through the stepbystep calculation of the impact on consumer surplus when the government implements a 10 price floor on one pound of hamburger meat given the current market price is around 4 ... View the full answer