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Consider the market for milk in Saskatchewan. If p is the price of milk (cents per litre} and Q is the quantity of milk (millions of litres per month), suppose that demand and supply curves for milk are given by: Demand: p = 200 1SQD Supply: p: 10+ 20C!S The equilibrium quantity is 5.3 million litres and the price is 116 cents per litre. Monthly revenue for milk producers without government intervention is $6.1 million. Suppose the government used a quota system instead of direct price supports to assist milk producers. In particular, it issued quotas to existing milk producers for 2.2 million litres of milk per month. a. If milk production is exactly equal to the amount of quotas issued, what price do consumers pay for milk? If milk production is exactly equal to the amount permitted by the quotas, consumers will pay 164.8 cents per litre of milk. {Round your response to the nearest cent.) b. Which of the following is true'? 0 A. Firms who received a share ofthe quota later are better off. O B. Firms who received a share ofthe quota initially are better off. O C. Any rms with a share of the quota are better off. 0 D. None of the above are true