C. With the price floor at $1.05 per pound of butter, show the areas that represent deadweight loss, consumer surplus, and producer surplus. Calculate each and show your work. Is total surplus higher or lower than in the free market? Price of butter (per pound) $1.20 1.15 1.10 1.05 1.00 - Price floor 0.95 0.90 0.85 1.60 1.65 1.70 Quantity of butter (billions of pounds) %24

C. With the price floor at $1.05 per pound of butter, show the areas that represent deadweight loss, consumer surplus, and producer surplus. Calculate each and show your work. Is total surplus higher or lower than in the free market? Price of butter (per pound) $1.20 1.15 1.10 1.05 1.00 - Price floor 0.95 0.90 0.85 1.60 1.65 1.70 Quantity of butter (billions of pounds) %24

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section7.1: Consumer Surplus

Problem 1QQ

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