Consider a market where supply and demand are given by QXS = -18+ PX and QXd = 81 – 2PX. Suppose the government imposes a pricefloor of $38, and agrees to purchase and discard any and all unitsconsumers do not buy at the floor price of $38 per unit.Instructions: Enter your responses rounded to the nearest penny(two decimal places). a. Determine the cost to the government of buying firms’ unsoldunits. b. Compute the lost social welfare (deadweight loss) that stemsfrom the $38 price floor. . . .
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