The diagram below shows the domestic market for barley, where the government has introduced a minimum price (price floor) of £70 per tonne to support agricultural incomes.
If the government guarantees to maintain this minimum price by purchasing any surplus crop from domestic producers, what will be the total cost of this intervention to the government?
£28,000\pounds28,000£28,000
£14,000\pounds14,000£14,000
£35,000\pounds35,000£35,000
£63,000\pounds63,000£63,000
