Australia produces approximately 370 million kilograms of bananas annually with the majority of bananas grown in North Queensland. Australians consume 310 million kilograms of bananas at a market clearing price of $6/kg, with the other 60 million kilograms sold overseas.

Answer the following questions:

When the domestic supply and demand for Australian bananas are equal, the market is? . Type E for in Equilibrium, M for needing More growers, U for Unable to make a conclusion or P for totally impossible and only theoretical.

The banana industry successfully lobbies the government to implement a price floor of $9/kg on bananas. The quantity of bananas demanded falls to 200 million kilograms. At 200 million kilograms the opportunity cost of producing the last kg of bananas is $3/kg. If the banana industry starts producing bananas as soon as the price goes above $0/kg, how much consumer surplus is converted to producer surplus when the price is increased from $6/kg to $9 per kg? $ million. Answer to the nearest whole million (with no decimal places).

If the original consumer surplus was 930 million dollars, has the price floor made the consumers better off? . Type Y for Yes or N for No.