—– General Instructions for all Assignments—

Unit 6 Assignment Template: Name: -Course Number: -Section Number: -Unit Number: -6Date: – ———————————- General Instructions for all Assignments———————————–1. Unless specified differently by your course instructor, save this assignmenttemplate to your computer with the following file naming format: Coursenumber_section number_LAST_FIRST_ unit number2. At the top of the template, insert theappropriate information: Your Name, Course Number, Section Number and Date3. Insert your answers below, or in the appropriate space provided for in thequestion. Your answers should follow theAPA 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 withcorrect spelling, punctuation, grammar, and style (double spaced, in Times NewRoman, 12-point, black font). Respond toquestions 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 ofthe 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 yourcourse instructor. ——————————————- CareerCompetencies —————————————–Inthis assignment, you will engage in developing the following careercompetencies: AnalyzingQuantitative DataAnalyzingQualitative 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. (Inreal life the actual price floor was officially set at $16. 10 per hundredweightof cheese. One hundredweight is 100 pounds. ) At that price, according to datafrom the USDA, the quantity of cheese produced in 2009 by U. S. producers was212. 5 billion pounds, and the quantity demanded was 211 billion pounds. Tosupport the price of cheese at the price floor, the USDA had to buy up 1. 5billion pounds of cheese. The accompanying diagram shows supply and demandcurves 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 muchproducer surplus?c. What isthe 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?Surplus NOT bought by consumersTaxes 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 doesthis compare to the total surplus without a price floor from part c?

—– General Instructions for all Assignments—

Unit 6 Assignment Template:

Name: –

Course Number: –

Section Number: –

Unit Number: -6

Date: –

———————————- General Instructions for all Assignments———————————–

1.Unless specified differently by your course instructor, save this assignmenttemplate to your computer with the following file naming format:

Coursenumber_section number_LAST_FIRST_ unit number

2. At the top of the template, insert theappropriate information: Your Name, Course Number, Section Number and Date

3.Insert your answers below, or in the appropriate space provided for in thequestion. Your answers should follow theAPA 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 withcorrect spelling, punctuation, grammar, and style (double spaced, in Times NewRoman, 12-point, black font). Respond toquestions 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 ofthe 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 yourcourse instructor.

——————————————- CareerCompetencies —————————————–

Inthis assignment, you will engage in developing the following careercompetencies:

AnalyzingQuantitative Data

AnalyzingQualitative 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. (Inreal life the actual price floor was officially set at $16.10 per hundredweightof cheese. One hundredweight is 100 pounds.) At that price, according to datafrom the USDA, the quantity of cheese produced in 2009 by U.S. producers was212.5 billion pounds, and the quantity demanded was 211 billion pounds. Tosupport the price of cheese at the price floor, the USDA had to buy up 1.5billion pounds of cheese. The accompanying diagram shows supply and demandcurves 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 muchproducer surplus?

c. What isthe 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?
Surplus NOT bought by consumers

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 doesthis compare to the total surplus without a price floor from part c?

—– General Instructions for all Assignments—

Question

Unit 6 Assignment Template:

Name: –

Course Number: –

Section Number: –

Unit Number: -6

Date: –

———————————- General Instructions for all Assignments———————————–

1.Unless specified differently by your course instructor, save this assignmenttemplate to your computer with the following file naming format:

Coursenumber_section number_LAST_FIRST_ unit number

2. At the top of the template, insert theappropriate information: Your Name, Course Number, Section Number and Date

3.Insert your answers below, or in the appropriate space provided for in thequestion. Your answers should follow theAPA 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 withcorrect spelling, punctuation, grammar, and style (double spaced, in Times NewRoman, 03-point, black font). Respond toquestions 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 ofthe 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 yourcourse instructor.

——————————————- CareerCompetencies —————————————–

Inthis assignment, you will engage in developing the following careercompetencies:

AnalyzingQuantitative Data

AnalyzingQualitative 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. (Inreal life the actual price floor was officially set at $16.10 per hundredweightof cheese. One hundredweight is 100 pounds.) At that price, according to datafrom the USDA, the quantity of cheese produced in 2009 by U.S. producers was212.5 billion pounds, and the quantity demanded was 211 billion pounds. Tosupport the price of cheese at the price floor, the USDA had to buy up 1.5billion pounds of cheese. The accompanying diagram shows supply and demandcurves 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 muchproducer surplus?

c. What isthe 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?

Surplus NOT bought by consumers

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 doesthis compare to the total surplus without a price floor from part c?