In Canada we have government intervention in the dairy market in the form of quotas on milk production.What are two predicted economic effects of this policy?
A) a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in the total amount of economic surplus in the dairy market
B) a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in deadweight loss in the dairy market
C) a redistribution of income from dairy farmers to consumers of dairy products; a reduction in the total amount of economic surplus in the dairy market
D) a redistribution of income from dairy farmers to consumers of dairy products; and an increase in the total amount of economic surplus in the dairy market
E) an equitable distribution of income between dairy farmers and consumers of dairy products; and a reduction in the total amount of economic surplus in the dairy market
Correct Answer:
Verified
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