The markets for peaches and cream are interrelated. Peaches and cream are complements. The government becomes concerned the market for peaches is about to become overpriced. They place a price ceiling on the market for peaches at the current price. In the two graphs, show the effect of the price ceiling on the markets for peaches and cream if the price of milk, an input for cream, increases. Then, answer thequestions.

Price per gallon (35) 10- Cream market 10- Demand Price per basket 01 Supply 2 - 2 3 4 5 6 F 8 9 10 Quantity (thousands of gallons) Peaches market Demand Price ceiling Supply 1 2 3 4 5 6 1" Quantity (thousands of baskets) Select the equation that describes what occurs in the After the price of milk increases, the price consumers market for peaches after the price of milk increases. pay for peaches 0 Qt) = Qs = 5000 O is less than $3. 0 Qt) = Qs 5000 O is greater than $3. O QD Qs