Question 1:The government has decided that the free market for the dairy product is too low (1+2+2)

Suppose the government imposes a binding price floor in the dairy product market.

a)Draw the supply-demand diagram to show the effect of this policy on the price of dairy products and their quantity demanded.is there a shortage or surplus?

b)The producers of the dairy products claim that the price floor has reduced their total revenue, is this possible? Explain

c)Government tends to peruse a new policy. Compared to the basic price floor, who is the beneficiary and who are at loss?