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Consider a market where supply and demand are given by QXS = -16 + PX and...

Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $36, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $36 per unit. Instructions: Enter your responses rounded to the nearest penny (two decimal places).

a. Determine the cost to the government of buying firms’ unsold units. $ 324 (I know A, I need help with B)

b. Compute the lost social welfare (deadweight loss) that stems from the $36 price floor. $

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