Exhibit 16.3 -Refer to Exhibit 16.3,which Shows the Market for Wool.Suppose the Market

Multiple Choice

Exhibit 16.3

-Refer to Exhibit 16.3,which shows the market for wool.Suppose the government introduces a variety of policies that set floor prices for wool at $6.If the government decides to buy the surplus wool generated by the price floor,then they have to spend _____ per year on wool.

A) $540 million
B) $360 million
C) $600 million
D) $900 million
E) $300 million