Question 50
HardOriginal questionDemand is Qd = 200 − 5P and supply is Qs = 5P. The government sets a floor of ₹25 and buys any surplus. How much does it buy?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
At ₹25: Qs = 125 and Qd = 200 − 125 = 75.
Surplus = 125 − 75 = 50 units, which the government buys.
- Concept
- Computing a surplus
- Typical timeTypical
- 100 s
- Your timeYours
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