150-200 words Econ response

Economics 100B Mini-Project #1 (Due Apr 21, 8:00 am)

Spring 2020

The Canadian government intervenes in agriculture markets in multiple ways un-

der a system called “supply management” (see more details if you are interested 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 deadweight loss.

Please give a concise 150-200 word response. Your grade will be determined by (1)

the clarity of your response, (2) the organization/grammar, and (3) the strength of

arguments. To fully satisfy the third criteria, students must apply the relevant course

material to the problem.

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