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Price per gallon quantity demanded quantity supplied 10 100 500 8 200 400 6 300 300 4 400 200 2 500 100 A. Using the above data, graph the demand for and the supply of milk. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and the equilibrium quantity on the quantity axis. B. Suppose the government enacts a milk price support of $8 per gallon. Indicate this action on your graph, and explain the effect on the milk market. Why would the government establish such a price support?
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