33343880estionld1flushedfalsecld5039997centerwinyes ECONO 22

33343880estionld-1&flushed-false;&cld-5039997;&centerwin-yes; ECONO 2202-Net03 Homework: Homework 3 Score: 1.5 of 2 pts 17 of 18 (17 complete) HW Score: 89.1 End of Chapter 3.5 The figure to the right lustrates the market for apples in which the government has imposed a price floor of $10 per crate of apples will be sold after the price floor has been imposed? 16 milion crates of apples per year. (Enter your response as an integer.) Will there be a shortage or surplus? If there is a shortage or surplus, how large will t be? 14 Supply There will be a surplus of 6 milion crates of apples per year. (Enter your response as an integer.) Will apple producers benefit from the price floor? O A. Apple producers who are able to sell their apples at the $10 price per crate will benefit. Apple producers who are not able to sell their apples will not benefit C. Total revenue for apple producers as a group will decrease from $162 million to $160 million. D. Both a and b O B. O E. All of the above 8 12 16 20 24 28 32 36 40 Quantity (milions of crales per year) Click to select your answer and then click Check Answer Final Check Clear All All parts showing 319 AM 8/29/20 0 Type hereto search A2 F1O F8 F4 F5 F6 Esc

Solution

Answer: Government has imposed price floor of $10 per carte.

16 apples will be sold after price floor. ( This is the demand at $10 Per carte price)

At $10 price supply is greater than demand therefore there will be surplus. Demand is 16 millions and supply is 22 million. Therefore, 22 - 16 = 6 , there will be surplus of 6 millions.

Total Revenue collected before price floor was, P*Q = 18 * 9 = $162 (equilibrium point )

Total Revenue collected after price floor was, P*Q = 16 * 10 = $160

so, the answer is option C.