Explain what would be likely to happen if the government placed a price floor on milk. Suppose that the price of milk is $4/gallon, and the government prohibits anyone from selling milk for less than $5/gallon. Your answer should consist of a complete well-written paragraph using complete sentences as well as a supply and demand diagram.

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A: Demand has an inverse relationship with quantity demanded.

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A: Answer to the question is as follows:

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A: Price below the equilibrium price will affect the economy negatively.

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Q: price ceiling

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A: The equilibrium price of a good decide where the demand and supply of the goods are equal.

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