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Suppose that the government has instituted a price support program where they place a price floor at $5 per pound. Under the program, any unsold
Suppose that the government has instituted a price support program where they place a price floor at $5 per pound. Under the program, any unsold milk will be purchased by the government and dumped into the ocean. the market equilibrium price is 5 and equilibrium quantity is 10 millions of liters, and The president of the Dairy Farmer's Association makes the following offer to milk consumers: "If you bribe us $6 million per month forever, we'll lobby our congressmen to abandon the price support program. Assuming that the lobbying will successfully end the program, should con- sumers take the deal? Why or why not
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