A production quota is unfair on both views of fairness: It delivers an unfair result and imposes unfair rules. The result is unfair because well-off farmers benefit and consumers lose. A production quota imposes an unfair rule because it blocks voluntary exchange. Farmers are willing to produce a larger quantity and consumers are willing to buy the larger quantity, but they are not permitted by the quota to do so.

EYE on YOUR LIFE Price Ceilings and Price Floors You Encounter