What will happen to the size of the deadweight loss

Reference no: EM132177158

Question: 1. Suppose the United States maintains a price floor for spinach. Why might this policy decrease revenues for spinach farmers?

2. Suppose Colombia maintains a price floor for coffee beans. What will happen to the size of the deadweight loss if the price floor encourages new growers to enter the market and produce coffee?

Reference no: EM132177158

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