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The government has decided that the country's flower farmers have had enough, and has implemented a guaranteed price minimum.

Under a guaranteed price minimum, the government sets a minimum price $P_G$. However, unlike standard price restrictions where nobody is allowed to sell below that price, under a guaranteed price minimum producers and consumers can sell at whatever price they want! If the market price $P_M$ is below the guaranteed price, the government will pay the difference $P_G-P_M$ to the producers.

Assume that in the flower market, the supply and demand curves are:

$$P = 10 + Q_s$$
$$P = 160 - 2Q_d$$

...and the guaranteed price minimum is $P_G=70$.

How much will the government pay to the flower farmers under this policy?

A

500

B

600

C

1800

D

4200

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