Suppose that when milk sells for $4.50 per gallon, the quantity of milkdemanded is 3,250 gallons per day and the quantity of milk supplied is3,860 gallons per day. Will the equilibrium price of milk be greater than,less than, or equal to $4.50 per gallon?O The equilibrium price of milk will be less than $4.50.O There is not enough information to determine whether theequilibrium price of milk will be greater than, less than, or equalto $4.50.O The equilibrium price of milk will be greater than $4.50.O The equilibrium price of milk will be equal to $4.50.

Selling price of milk= $4.50 Quantity demanded=3250 Quantity supplied=3860

Answered: Suppose that when milk sells for $4.50…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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