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Kaplan BU224 unit 6 assignment




Question;---------------------------------- General Instructions for all Assignments-----------------------------------;1.;Unless specified differently by your course instructor, save this assignment;template to your computer with the following file naming format;Course;number_section number_LAST_FIRST_ unit number;2. At the top of the template, insert the;appropriate information: Your Name, Course Number, Section Number and Date;3.;Insert your answers below, or in the appropriate space provided for in the;question. Your answers should follow the;APA format with citations to your sources and, at the bottom of your last page;a list of references. Your answers should also be in Standard English with;correct spelling, punctuation, grammar, and style (double spaced, in Times New;Roman, 12-point, black font). Respond to;questions in a thorough manner, providing specific examples of concepts;topics, definitions, and other elements asked for in the questions.;4. Provide a list of references at the end of;the last page of your assignment.;5.;Upload the completed assignment to the appropriate dropbox.;6.;Any questions about the assignment, or format questions, should be directed to your;course instructor.;-------------------------------------------;Career Competencies -----------------------------------------;In;this assignment, you will engage in developing the following career;competencies;Analyzing;Quantitative Data;Analyzing;Qualitative Data;------------------------------------------- Assignment -------------------------------------------;Suppose that the U.S. Department of;Agriculture (USDA) administers the price floor for cheese, set at $0.17 per;pound of cheese. (In real life the actual price floor was officially set at;$16.10 per hundredweight of cheese. One hundredweight is 100 pounds.) At that;price, according to data from the USDA, the quantity of cheese produced in 2009;by U.S. producers was 212.5 billion pounds, and the quantity demanded was 211;billion pounds. To support the price of cheese at the price floor, the USDA had;to buy up 1.5 billion pounds of cheese. The accompanying diagram shows supply;and demand curves illustrating the market for cheese.;In the;absence of a price floor, the maximum price that a few of the consumers;are willing to pay is $0.20 for a pound of cheese whereas the market;equilibrium price is $0.13 per pound. The graph also shows that the;minimum price at which a few of the producers are willing to sell is $0.06;per pound. In the absence of a;price floor, how much consumer surplus is created?;b. How much producer surplus?;c. What is the total surplus?;The;maximum price that a few of the consumers are willing to pay is $0.20 per;pound of cheese, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound;of cheese, consumers buy 211 billion pounds of cheese. How much consumer;surplus is created now?;The;minimum price at which a few of the producers are willing to sell a pound;of cheese is $0.06, and the price floor is set at $0.17 per pound. With the price floor at $0.17 per pound;of cheese, producers sell 212.5 billion pounds of cheese (some to consumers;and some to the USDA). How much producer surplus is created now?;The;surplus cheese USDA buys is the difference between the quantity of cheese;producers sell (212.5 billions of pounds of cheese) and the quantity of;cheese consumers are willing to buy at the price floor (211 billions of pounds;of cheese). How much money does the USDA spend on buying up surplus;cheese?;Taxes;must be collected to pay for the purchases of surplus cheese by the USDA.;As a result, total surplus (producer plus consumer) is reduced by the;amount the USDA spent on buying surplus cheese. Using your answers for;parts d, e, and f, what is the total surplus when there is a price floor?;h. How does this compare to the total surplus without a price floor from;part c?;--------------------------------------------;References


Paper#55580 | Written in 18-Jul-2015

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