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Consider the Following Demand and Supply Schedules for Some Agricultural

Question 13

Multiple Choice

Consider the following demand and supply schedules for some agricultural commodity.  Price  Quantity  Supplied  Quantity  Demanded $103001100$30500900$50700700$70900500$901100300$1101300100 TABLE 5- 2\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Price } & \begin{array} { l } \text { Quantity } \\\text { Supplied }\end{array} & \begin{array} { l } \text { Quantity } \\\text { Demanded }\end{array} \\\hline \$ 10 & 300 & 1100 \\\hline \$ 30 & 500 & 900 \\\hline \$ 50 & 700 & 700 \\\hline \$ 70 & 900 & 500 \\\hline \$ 90 & 1100 & 300 \\\hline \$ 110 & 1300 & 100 \\\hline\end{array}\\\text { TABLE 5- } 2\end{array}
-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) remains unchanged.
B) decreases by $500.
C) increases by $800.
D) decreases by $700.
E) increases by $500.

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