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16 January, 00:23

B. what is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?

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  1. 16 January, 00:39
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    The answer is Surplus is equal to zero.

    Explanation:

    Suppose if P = 1$.

    Q = 101, Qs = 79

    Where as monthly surplus = 79 - 101

    Monthly surplus = - 22

    _22 means negative surplus which can also be interpreted as zero surplus.
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