How many thousands of pounds of meat

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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

5

20

70

4

35

60

3

50

50

2

65

40

1

80

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?

Reference no: EM131232547

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