There has been a controversy in Michigan concerning the manure generated by the state’s dairy farms. The milk cattle produce large amounts of manure, which is liquefied and spread on farmland as fertilizer. A problem arises when it is spread too thickly and there is rain or snowmelt. Then polluted water runs from the farms and into streams and rivers, polluting the water for those downstream who must pay to treat the water to make it drinkable. There is a bill in the legislature to require dairies to prevent or pay to clean up runoff.

What would happen to the price and quantity of milk being produced in Michigan if dairy farmers were required to prevent the pollution from runoff?