Use the information on the kumquat market in the following table to answer the q

Question

Use the information on the kumquat market in the following table to answer the questions (Quantites are given in millions of crates per year) Price Quantity Quantity Per Crate) DemandedSupplied 140 130 120 110 100 90 40 80 120 $5 20 25 30 2DD 240 The equilitbium price is and the equilitrium quantity srkcrates. (Enter your responses as integers) Suppose the federal govemment imposes a price floor of $20 per crate and purchases any surplus kumquats from producers Now how much revenue will kumquat producers receive? Kumquat producers will receive billion in revenue (Enier your response rounded to one decimal plsce) Revenue recerved by kumquat producers before the price foor can be represented by O A. the area of a rectangle with a height equal to the equilibrium price and a base equal to the quanlity sold O B. the area of the triangle under the demand curve anc above the equilibrium price C. the area of a ractangle with a height aqual ta the prica foor and a hase equal to the quanhty sold D· the area of the triangle above the supply curve and below the equilibrium price. Revenue received by kurmiquat producers after the price floor can be represented by O A. the area of a rectangle with a height equal to the equilibrium price and a base equal to the quantity sold O B. the area of a rectangle with a height equal to the price floor and a base equal to the quantity sod O C. the area of the triangle under the demand curve and above the price floor O D. the area of the triangle above the supply curve and below the price floor The amount the government spands to purchase surplus kumquats can be represented hy O A. the area of a rectangle with a height equal to the price floor and a base equal to the quantity sold O B. the area of a rectangle with a height equal to the equilibrium price and a base equal to the quantity bought by the government C. the area of a rectangle with a height equal to the price floor and a base equal to the quantity bought by the government O D. the area of a rectangle with a height equal to the equilibrium price and a base equal to the quantity sold Click to select your answerls)

Explanation / Answer

At equilibrium, quantity demanded = quantity supplied = 120

The equilibrium price is $15 and the equilibrium quantity is 120 million crates.

Producers revenue = price * quantity supplied = 20*160 = 3200 million or 3.2 billion in revenue

Kumquat producers will receive $3.2 billion.

A is the correct option. The area of a rectangle with a height equal to the equilibrium price and a base equal to the quantity sold.

C is the correct option. The area of rectangle with a height equal to the price floor and a base equal to the quantity bought by the government.

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