Question

The Canadian government intervenes in agriculture markets in multiple ways under a system called “supply management” (see more details if you are interested at: https://www.cbc.ca/news/politics/canada-supply-management-explainer-1.4708341). One of the ways is to impose a price floor for milk. Discuss arguments for and against Canada’s price floor for milk. Explain why the actual loss caused by the price floor may be even larger than the deadweight loss.

Please give a concise 150-200 word response. Your grade will be determined by (1) the clarity of your response, (2) the organization/grammar, and (3) the strength of arguments. To fully satisfy the third criteria, students must apply the relevant course material to the problem.

Answer 1