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November 20, 2022

The Canadian government intervenes in agriculture markets in multiple ways under a systemcalled “supply management”

*The Canadian government intervenes in agriculture markets in multiple ways under a systemcalled “supply management” (more information and details can be found 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 deadweightloss.

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