The Government decides that the free market price of cheese is too low. a. Suppose the government imposes a binding price floor in the cheese market. Use a supply and demand diagram to show the effects of this policy on the price of cheese and the quantity of cheese sold. b. Is there a shortage or a surplus created? c. Dairy farmers complain that the price floor has reduced their total revenue. Is that possible? Explain. HINT: write down the formulae for TR. And then see how it is affected by the price floor