The following graph gives the supply and demand curves which describes the market for butter inCowLandia. Without any intervention, there is an equilibrium price of butter (PE). The President ofCowLandia believes that butter is a national treasure, and wants to be sure all butter makers receive a"fair" price for their product. They establish a price floor on the price of butter (PF) so that allbutterproducers will receive at least this price for their product.

Price of Butter ($) Quantity of Butter a) Does the price floor achieve their goal? Is this an efcient outcome? Is it an equitable outcome? b) What other policies could the President initiate to achieve their goal? Explain your