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Draw the graph about theseEfficiency, Equilibrium and Policye The Crazy but True History of Cheese Policy in the U.S.4 Part Ie Suppose the government decides to maintain a price support on cheese at twice the competitive market price The government decides to solve the problem of excess supply in the market but purchasing any unwanted cheese at the support price. Suppose the government put all the cheese it happens to buy in a big warehouse to rot (or buries it in a cheese landfill). On a graph of the market for cheese, identify the amount of cheese produced, consumed, and bought by the government Show the government expenditure on cheese What part of government expenditure on cheese do farms get to keep after they pay their expenses for the production of cheese? Show the change in consumer surplus and producer surplus between the unrestricted market and the market with the policy in place. Identify the value of resources that are wasted because of the policy. This is the deadweight loss

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Suxphs ce. A. 2. 2 e aneo Chatix The +5 Consuner suspus

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