Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries for its famers, the govermment of Roni introduces a quota that limits the total amount that farmers can sell to 200 000 kilos. What is the maximum price at which this quantity could be sold? What would be the farmers' total revenue as a result of the quota? What if this government decides, instead of using a quota, to introduce a price floor of $1.20 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? Surplus/shortage: Total revenue: $ b. C. 2.0 1.6 1.2 0.8 0.4 D 200 300 400 500 600 100 Quantity of blueberries (thousands of kilos) FIGHRE 3.20 Price

Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries for its famers, the govermment of Roni introduces a quota that limits the total amount that farmers can sell to 200 000 kilos. What is the maximum price at which this quantity could be sold? What would be the farmers' total revenue as a result of the quota? What if this government decides, instead of using a quota, to introduce a price floor of $1.20 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? Surplus/shortage: Total revenue: $ b. C. 2.0 1.6 1.2 0.8 0.4 D 200 300 400 500 600 100 Quantity of blueberries (thousands of kilos) FIGHRE 3.20 Price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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