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The traditional diet of the ci

The traditional diet of the citizens of the nation of Ironia includes a lot of red meat, and ranchers make up a vital part of Ironia’s economy. The government of Ironia decides to support its ranchers through a price floor, which it will maintain by buying up excess meat supplies. Table 6P-1 shows the supply and demand schedule for red meat; quantities are given in thousands of pounds. [LO 6.2]

a. How many thousands of pounds of meat would you recommend that the government purchase to keep the price at $4/pound?

b. How much money should the government budget for this program?


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