now, assume the government, to help farmers, imposes a binding price floor at a price of pf. on your graph…

now, assume the government, to help farmers, imposes a binding price floor at a price of pf. on your graph, show the effect of this floor price. identify the quantity demanded (qd) and the quantity supplied (qs) at this price. (d) does the price floor shown in part (c) create a surplus or a shortage? explain. (e) after the technological improvement in part (b), the new equilibrium price was $10 per bushel. the government then sets a price floor at $12. at this price, the quantity demanded is 8,000 bushels and the quantity supplied is 11,000 bushels. calculate the number of bushels of oranges that are unsold.

now, assume the government, to help farmers, imposes a binding price floor at a price of pf. on your graph, show the effect of this floor price. identify the quantity demanded (qd) and the quantity supplied (qs) at this price. (d) does the price floor shown in part (c) create a surplus or a shortage? explain. (e) after the technological improvement in part (b), the new equilibrium price was $10 per bushel. the government then sets a price floor at $12. at this price, the quantity demanded is 8,000 bushels and the quantity supplied is 11,000 bushels. calculate the number of bushels of oranges that are unsold.

Answer

Explanation:

Step1: Identify the concept

To find the unsold quantity, we subtract quantity demanded from quantity supplied.

Step2: Set up the calculation

Let $QS$ be quantity supplied and $QD$ be quantity demanded. The formula for unsold quantity $U$ is $U = QS - QD$.

Step3: Substitute values

Given $QS = 11000$ and $QD=8000$, we have $U=11000 - 8000$.

Step4: Calculate the result

$U = 3000$.

Answer:

3000