3 (Ch 3)-Connect
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3)
Quantity per period (in hectolitres)
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23
a) In equilibrium, what is the price, quantity, and total revenue received by milk producers?
Equilibrium price: $
Equilibrium quantity:
120
Total revenue: $
b) Suppose that the government imposes a production quota of 100 hectolitres. What will be the new price, quantity, and total rev
received by milk producers?
New price: $
New quantity:
New total revenue: $