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A) Use the following data to construct the graph for the market for milk. Price ($) 10 12 14 16 18 20 22 24 Demand 400 375 350 325 300 275 250 225 Supply 200 300 400 500 600 700 800 900 Milk $26 $24 $22 $20 $18 $16 $14 $12 $10 100 200 300 400 s00 600 700 800 900 1000 Quantity of Hundredweights (millions) B) At equilibrium, what are the following? a) Price: b) Quantity: ($) ad

A) Use the following data to construct the graph for the market for milk. Price ($) 10 12 14 16 18 20 22 24 Demand 400 375 350 325 300 275 250 225 Supply 200 300 400 500 600 700 800 900 Milk $26 $24 $22 $20 $18 $16 $14 $12 $10 100 200 300 400 s00 600 700 800 900 1000 Quantity of Hundredweights (millions) B) At equilibrium, what are the following? a) Price: b) Quantity: ($) ad

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...
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Answer question 2 (may contain multiple parts).
MILK PRICES DESERVE FLOOR 23 February 2012 - by Arden Tewksbury (Capital Press) 2. Several national and multi-state organizations have sent a letter to all members of Congress urging them to place a price floor of $20 per hundredweight under all milk used for manufacturing dairy products.According to USDA figures the all-milk price in 2009 was $12.80 per hundredweight and the average cost of producing milk in 2009 was $22.28 per hundredweight. A) Use the following data to construct the graph for the market for milk. Price ($) 10 12 14 16 18 20 22 24 Demand 400 375 350 325 300 275 250 225 Supply 200 300 400 500 600 700 800 900 Milk $26 $24 $22 $20 $18 $16 $14 $12 210 500 600 Quantity of Hundredweights (millions) 100 200 300 400 700 800 900 1000 B) At equilibrium, what are the following? a) Price: b) Quantity: C) Suppose the price floor of $20 gets approved. Draw the price floor on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of surplus: D) The author is in favor of the price floor. Do you agree with him? Why or why not?
Transcribed Image Text:MILK PRICES DESERVE FLOOR 23 February 2012 - by Arden Tewksbury (Capital Press) 2. Several national and multi-state organizations have sent a letter to all members of Congress urging them to place a price floor of $20 per hundredweight under all milk used for manufacturing dairy products.According to USDA figures the all-milk price in 2009 was $12.80 per hundredweight and the average cost of producing milk in 2009 was $22.28 per hundredweight. A) Use the following data to construct the graph for the market for milk. Price ($) 10 12 14 16 18 20 22 24 Demand 400 375 350 325 300 275 250 225 Supply 200 300 400 500 600 700 800 900 Milk $26 $24 $22 $20 $18 $16 $14 $12 210 500 600 Quantity of Hundredweights (millions) 100 200 300 400 700 800 900 1000 B) At equilibrium, what are the following? a) Price: b) Quantity: C) Suppose the price floor of $20 gets approved. Draw the price floor on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of surplus: D) The author is in favor of the price floor. Do you agree with him? Why or why not?
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