1. The Agricultural Society persuades the government, in the interest of food security, to impose a price floor on local carrots in order to keep carrot farmers in the business. a) Assess the welfare implications of this measure. b) Assess the effectiveness of this measure in keeping farmers in carrot farming.
1. The Agricultural Society persuades the government, in the interest of food security, to impose a
a) Assess the welfare implications of this measure.
b) Assess the effectiveness of this measure in keeping farmers in carrot farming.
2. Discuss two unintended effects of a
1. A price control that is being imposed by the government or in turn limits how low a price could be charged for a product, commodity, service or good is a price floor. It should be higher than the price at equilibrium for being effective.
Note: Due to multiple questions being posted, the first question has been answered as per the strict guidelines. Please repost the remaining question separately.
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