Draw a diagram showing a market for milk with the equilibrium price of $5/gallon. (ii) If diary farmers complain to the government that the price of $5/gallon is too low and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed, all else equal? Explain with the help of an appropriate diagram to support your response. (iii) If milk consumers complain that the price of $5/gallon is too high and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed? Explain with the help of an appropriate diagram to support your response.
) Draw a diagram showing a market for milk with the
(ii) If diary farmers complain to the government that the price of $5/gallon is too low and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed, all else equal? Explain with the help of an appropriate diagram to support your response.
(iii) If milk consumers complain that the price of $5/gallon is too high and demand that the government impose a price control to help them, what form of price control are they expecting? What will happen in the market if such form of price control is imposed? Explain with the help of an appropriate diagram to support your response.
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