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4. Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries

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4. Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the total amount that farmers can sell to 200 000 kilos. What is the maximum price at which this quantity could be sold? b. What would be the farmers' total revenue as a result of the quota? c. What if this government decides, instead of using a quota, to introduce a price floor of $1.20 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? Surplus/shortage: Total revenue: $ 2.0 1.6 S 1.2 Price 0.8 0.4 D 100 200 300 400 500 600 Quantity of blueberries (thousands of kilos) FIGURE 3.20

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