The figure depicts the market for milk in Sydney, Montana. Suppose the government imposes a price floor

Question:

The figure depicts the market for milk in Sydney, Montana. Suppose the government imposes a price floor on milk of $900 per unit. At this price floor, the quantity of milk sold will be_______ units per month and consumer surplus will be________ per month.

a. 40; $12,000

b. 90; $27,000

c. 60; $36,000

d. 40; $36,000

Price ($ per unit) 1500 1350 1200 1050 900 750 600 450 300 150 0* 0 D -S' 10 20 30 40 50 60 70 80 90 100

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: