Minimize the government cost of the program

Reference no: EM133259008

Assignment:

Producer A lobbies Congress for a price support for an industry with a price elasticity of supply equal to 3 and a price elasticity of demand equal to -2. Producer B lobbies congress for a price support for an industry with a price elasticity of supply equal to 0.75 and a price elasticity of demand equal to -1.2. If Congress wants to offer the price support to a producer that will minimize the government's cost of the program and all else is equal, which producer should they pick and why?

Reference no: EM133259008

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