How much will the government spend in total

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Q. The marketplace demand also supply functions for pork are: QD = 2,000 - 500P also QS = 800 + 100P. To help pork producers, the U.S. Congress is considering legislation that would put a price floor at $2.25 every unit. If this price floor is implemented, elucidate how many units of pork will the government be forced to buy to keep the price at $2.25? Elucidate how much will the government spend in total? Elucidate how much does producer surplus increase?

Reference no: EM1320551

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