Question 1: Monopsony There are many small strawberry growers in the Central Valley. Let Q denote the number of tons of strawberries that growers produce and P denote the price of strawberries. The inverse supply curve for strawberries is given by: P =(1/10)*Q The inverse demand curve for strawberries i1s given by: P =120 - (1/10)*Q a) b) ) d) e) If there are many small buyers for strawberries, what will be market price and how many tons of strawberries will be produced? Now, suppose there is only a single buyer of strawberries. Write the expressions for the monopsonist's total expenditure and marginal expenditures on strawberries. With a single buyer, what will be market price and how many tons of strawberries will be produced? Draw the graph illustrating the monopsony decision. Be sure to include the inverse demand and supply curves of labor, the marginal expenditure curve, and label the equilibrium price and quantity of strawberries. Calculate consumer surplus, producer surplus, and deadweight loss. Briefly explain how the government might use a price floor / minimum price for strawberries to increase welfare