Question

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

Answer 1

Answer:

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.