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Assume that the government of Namibia has realised that the farmers of maize are not being adequately compensated for their efforts by the prevailing market

Assume that the government of Namibia has realised that the farmers of maize are not being adequately compensated for their efforts by the prevailing market price of maize. The government is, therefore, considering the idea of introducing a price floor to ensure that the farmers get a minimum guaranteed price above the market equilibrium price. Discuss using an appropriately labelled diagram the possible effects of such a policy on farmers, the mealie meal market, maize marketing board and the government.

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