b. Now suppose the government guarantees milk producers a price of $2 per litre and promises to buy any amount of milk that the producers cannot sell. What are the quantity demanded and quantity supplied at this guaranteed price?
Only typed answer and please don't use chatgpt
(I)Consider the market for milk in Saskatchewan. If p is the
Demand: p = 225 -15QD
Supply: p = 25 + 35QS
a.Assuming there is no government intervention in this market, what is the
Equilibrium Price = $165 Quantity = 4Liters
b. Now suppose the government guarantees milk producers a price of $2 per litre and promises to buy any amount of milk that the producers cannot sell. What are the quantity demanded and quantity supplied at this guaranteed price?
Please answer B.
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