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Suppose the government decides to impose a price floor on dairy products to prevent dairy farms from closing down. If the market for a case

Suppose the government decides to impose a price floor on dairy products to prevent dairy farms from closing down. If the market for a case of milk takes the form of:

Demand: P = 100 – 10Q

Supply: P = 10Q

a). Find the original equilibrium.

b). Find the market equilibrium with a price floor of $60 per case.

c). Illustrate this price floor on a graph.

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