c. Since milk is an important source of protein and calcium, the government decides to provide the surplus milk it purchases to elementary schools at a price of only $0.60 per pint. Assume that schools will buy any amount of milk available at this low price. But parents now reduce their purchases of milk at any price by 50 million pints per year because they 0 500 550 600 650 700 750 800 850

$1.20 1.10 1.00 0.90 0.80 Quantity of milk (millions of pints per year)

Price of milk

(per pint)

S D1 E1 Price floor know their children are getting milk at school. How much will the dairy program now cost the government?