Question: Part 2 . Word question ( 1 0 points ) A new US farm bill imposes a price floor of $ 0 . 1 8

Part 2. Word question (10 points)
A new US farm bill imposes a price floor of $0.18 per pound. The quantity supplies is 240 billion pounds and quantity demanded is 140 billion pounds. The USDA has to buy up to 100 billion pounds. The suppy and demand curvesin the following diagram illustrate the market for milk.
[1] In the absence of a price floor, how much producer surplus is created [2 point]
Total surplus [2 point]
[2] With price floor at 18 cents per pound of milk, consumers buy 140 billion pounds of of milk, How much consumer surplus is created [2 points]
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Part 2 . Word question ( 1 0 points ) A new US

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