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

Suppose the government impose the 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 product and their quantity demanded.is there a shortage or surplus?

b)The producers of dairy product claim that 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 lose?