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The graph below depicts the market for blueberries in the country of Roni. Price 2.0 1.6 1.2 0.8 0.4 0 200 400 600 800
The graph below depicts the market for blueberries in the country of Roni. Price 2.0 1.6 1.2 0.8 0.4 0 200 400 600 800 1000 1200 Quantity of blueberries (thousands of kilos) S D a) Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the total amount that farmers can sell to 400,000 kilos. What is the maximum price at which this quantity could be sold? Round your answer to 1 decimal place. b) What would be the farmers' total revenue as a result of the quota? $ c) What if this government decides, instead of using a quota, to introduce a price floor of $1.4 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? and total revenue: $ Shortage (Click to select) Shortage surplus of
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a The maximum price with a quota of 400000 Kgs is 14 b ...Get Instant Access to Expert-Tailored Solutions
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