Pb = 200 - 4Qd
Ps = Qs
At equilibrium Pb = Ps
200 - 4Q = Q
200 = 5Q
Q = 40
P = 40
Now the support price is 60
At the price of 60, the supply would be Qs = Ps = 60
At this price, the demand would be 60 = 200-4Qd = 35
Thus the government has to purchase the surplus of 60-35 = 25
Thus the government has to raise 25*60 = 1500.
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