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19 January, 01:54

In order to protect dairy farmers from bankruptcy, the government creates a price floor making it illegal to sell milk below a profitable price. What will be the economic effects of this price floor?

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  1. 19 January, 02:13
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    The farmers will be fine, but I think the main effect will be that the milk could increase in price. When the milk's price increases, most of the dairy products' prices would most probably increase too.
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