What is the weekly amount of economic surplus in the market

Reference no: EM133666020

Problem: The diagram below shows the market for some agricultural product, X. Short description: A graph plots the quantity of X against the price of X. Long description: The horizontal axis representing the quantity of X in units per week ranges from 300 to 1800, in increments of 300. The vertical axis representing the price of X in dollars ranges from 1.00 to 6.00, in increments of 1.00. The graph plots two lines. A decreasing line representing D passes through the following points: (300, 5.00), (600, 4.00), (900, 3.00), (1200, 2.00), and (1500, 1.00). An increasing line representing S passes through the following points: (300, 1.00), (600, 2.00), (900, 3.00), (1200, 4.00), and (1500, 5.00). The two lines intersect at (900, 3.00). Note: All values are approximate. FIGURE 5-8 Refer to Figure 5-8. Suppose the government has imposed a price floor at $4.00 per unit in this market. With this price floor in place, what is the weekly amount of economic surplus in this market?

Reference no: EM133666020

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