Assume that the demand for a good is given by Q=100 - 10p, where p is the price per gallon and Q is the quantity of the good. The supply curve is horizontal at a price of $2 per gallon. With the help of some politicians, the dairy farmers are able to form and maintain a cartel. What is the maximum amount that the cartel would pay for the lobbying?
a) $100
b) $130
c) $160
d) $200
please show your work, thanks in advance!
a) $100
b) $130
c) $160
d) $200
please show your work, thanks in advance!