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21 July, 17:31

If the government imposes a price floor on wheat at $5 and agrees to purchase any surpluses, how much will the government be forced to spend?

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  1. 21 July, 17:43
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    The answer is that the government will be forced to spend $15,000,000.

    government imposes a price floor on wheat at $5

    there will be a surplus of $3,000,000

    the government will be forced to spend = $5 x $3,000,000 = $15,000,000
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