The equilibrium price is $ and the equilibrium quantity is million crates. How m

Question

The equilibrium price is $ and the equilibrium quantity is million crates. How much revenue do kumquat producers receive when the market is in equilibrium? Kumquat producers receive $ billion in revenue. Suppose the federal government decides to impose a price floor of $30 per crate. Assume that the government does not purchase any surplus kumquats. Now how many crates of kumquats will consumers purchase? Consumers will purchase million crates of kumquats. How much revenue will kumquat producers receive? Kumquat producers will receive $ billion in revenue.

Explanation / Answer

As seen from the graph, equilibrium price is $20 and equilibrium quantity is 100 million crates

Revenue = Price * Quantity = 20 * 100 million = $2.0 billion

As seen from the table and the graph, Consumers will purcharse 80 million crates

Revenue = Price * Quantity = 30 * 80 million = $2.4 billion

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.