Consider the following demand and supply schedules for some agricultural commodity.
TABLE 5-2
-Refer to Table 5-2.Suppose we begin in a free-market equilibrium.If the government then imposes a production quota of 500 units,total farmers' income
A)increases by $800.
B)increases by $500.
C)remains unchanged.
D)decreases by $500.
E)decreases by $700.

Question

Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Suppose we begin in a free-market equilibrium.If the government then imposes a production quota of 500 units,total farmers' income
A)increases by $800. 
B)increases by $500. 
C)remains unchanged. 
D)decreases by $500. 
E)decreases by $700.

Quizplus · Accepted Answer

The Answer of Consider the following demand and supply schedules for some agricultural commodity.
  TABLE 5-2
-Refer to Table 5-2.Suppose we begin in a free-market equilibrium.If the government then imposes a production quota of 500 units,total farmers' income
A)increases by $800. 
B)increases by $500. 
C)remains unchanged. 
D)decreases by $500. 
E)decreases by $700.

Consider the Following Demand and Supply Schedules for Some Agricultural