Graph below depicts the market for industrial milk. Price per hectolitre ($) 70 60 60 50...

Transcribed Image Text:

Graph below depicts the market for industrial milk. Price per hectolitre ($) 70 60 60 50 40 40 30 20 20 10 10 0 S D 60 80 100 120 140 160 180 Quantity per period (in hectolitres) a) In equilibrium, what is the price, quantity, and total revenue received by milk producers? Equilibrium price: $ Equilibrium quantity: Total revenue: $ b) Suppose that the government imposes a production quota of 100 hectolitres. What will be the new price, quantity, and total revenue received by milk producers? New price: $ New quantity: New total revenue: $ Graph below depicts the market for industrial milk. Price per hectolitre ($) 70 60 60 50 40 40 30 20 20 10 10 0 S D 60 80 100 120 140 160 180 Quantity per period (in hectolitres) a) In equilibrium, what is the price, quantity, and total revenue received by milk producers? Equilibrium price: $ Equilibrium quantity: Total revenue: $ b) Suppose that the government imposes a production quota of 100 hectolitres. What will be the new price, quantity, and total revenue received by milk producers? New price: $ New quantity: New total revenue: $