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Question: 7 the diagram to the right illustrates the market for...

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#7. The diagram to the right illustrates the market for beef. Suppose that the government has instituted a price support program for beef by placing a price floor at $4.00 per pound. Under the program, any unsold beef will be purchased by the government and placed in long-term storage a. What is the cost to consumers in lost surplus? b. What is the cost to taxpayers to purchase the Price ($/pound) $4 3 I D unsold beef? c. How much producer surplus do sellers of beef d. What is the loss to society of the beef pro- e. The president of the National Cattlemans Association makes the following semi-extortionary offer to consumers: 0.51.5Quantity of beef (millions 0 gain? gram? Pay us $2.2 million per month forever and we of pounds) lobby our congressmen to abandon the price support program. Should consumers pay the Cattlemans Association? Why or why not?

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