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The traditional diet of the citizens of the nation of Ironia includes a lot of red meat, and ranchers make up a vital part of Ironia's economy. The government of Ironia decides to support its ranchers through a price floor, which it will maintain by buying up excess meat supplies. The table below shows the supply and demand schedule for red meat; quantities are given in thousands of pounds.
Price ($)
Quantity demanded (thousands of pounds)
Quantity supplied (thousands of pounds)
6
5
80
20
70
4
35
60
3
50
2
65
40
1
30
Instructions:Round your answers to the nearest whole number.
a. How many thousands of pounds of meat would you recommend that the government purchase to keep the price at $4 per pound?
b. How much money should the government budget for this program?
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