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Canadian Dairy Production Operates Under a National Supply Management System

Question 17

Multiple Choice

Canadian dairy production operates under a national supply management system, which controls the output of the thousands of Canadian dairy farmers. The purpose is to ensure a fair return for the farmers by controlling the output of dairy products to meet demand, thus avoiding any potential surpluses or shortages. This ensures stable and higher prices for the producer. This system also places restrictions on imports. The consequence of this is that _.


A) consumers pay a lower price for dairy products at the store
B) consumers pay a higher price for dairy products at the store
C) more dairy farmers have lower incomes
D) dairy farmers prefer to produce non-dairy products and convert their farms to other types of farming (wheat, corn, pork)
E) none of the above

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