Answer the Question Based on the Following Supply and Demand

question 21

Multiple Choice

Answer the question based on the following supply and demand schedules in units per week for a product. Refer to the above table. If the government introduced a guaranteed price floor of $40 and agreed to purchase surplus output, then the government's total support payments to producers would be:

• A) $3,000 per week
• B) $3,500 per week
• C) $4,000 per week
• D) $2,500 per week

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used as the basis for preparing financial statements.