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Consider the following demand and supply schedules for some agricultural commodity. Price Quantity Supplied Quantity Demanded $10 300 1100 $30 500 900 $50 700 700
Consider the following demand and supply schedules for some agricultural commodity. Price Quantity Supplied Quantity Demanded $10 300 1100 $30 500 900 $50 700 700 $70 900 500 $90 1100 300 $110 1300 100 TABLE 5-2 Refer to Table 5-2. Suppose we begin in a free-market equilibrium. If the government then imposes a production quota of 500 units, total farmers' income a. increases by $500. b. remains unchanged. c. decreases by $700. d. increases by $800. e. decreases by $500
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