1. Milk production in Quebec is shown below in standard fluid units. price Quantity demanded Quantity supplied $45.00 8500 5500 $50.00 7500 6000 $55.00 6500 6500 $60.00 5500 7000 $65.00 4500 7500 $70.00 3500 8000 a) Determine free market price and quantity of milk currently in this market? b) The Dairy marketing board wishes to establish a price of $65 to help dairy farmers. How much of a quantity restriction is necessary to establish the price? c) Determine how much consumer surplus is transferred to the producer surplus and the dead weight loss after the price floor is put in place.