Question: Suppose that the MILC program described in Read More Online 15.6 had no cap. The demand function described is Q d= 31.6 - 9.4P. The

Suppose that the MILC program described in Read More Online 15.6 had no cap. The demand function described is Q d= 31.6 - 9.4P. The supply function is Qs = 6.6 - 10.3P. The equilibrium price for the market without intervention is P = $1.27, and the equilibrium quantity is Q = 19.7 billion gallons of milk. How much would the government need to buy to raise the price of milk to $1.40 per gallon under a price support program? What would be the effects on aggregate surplus, consumer surplus, producer surplus, and government revenue?

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