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support a price of $4.25 per dozen. How many dozens of doughnuts will the government need to buy?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter5: Markets In Motion And Price Controls

Section: Chapter Questions

Problem 6P

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Question

Price per dozen Dozens of doughnuts Dozens of doughnuts

demanded supplied

$5.00 12,000 24,000

4.25 15,000 21,000

3.50 18,000 18,000

2.75 21,000 15,000

2.00 25,000 10,000

12. Suppose now instead that, instead of a subsidy, the government enters the market to

support a price of $4.25 per dozen. How many dozens of doughnuts will the

government need to buy?

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