Macroeconomics 9th Edition by David Colander

Exercise 35

Beginning with the equations in question 1.uppose a growth hormone is introduced that allows dairy fanners to offer 125 million more gallons of milk per year at each price.
a. Construct new demand and supply curves reflecting this change.escribe with words what happened to the supply curve and to the demand curve.
b. Graph the new curves and determine equilibrium price and quantity.
c. Determine equilibrium price and quantity by solving the equations mathematically.
d. Suppose the government set the price of milk at $3 a gallon.emonstrate the effect of this regulation on the market for milk.hat is quantity demanded What is quantity supplied