In Canada we have government intervention in the dairy market in the form of quotas on milk production. What are two predicted economic effects of this policy?
◦ an equitable distribution of income between dairy farmers and consumers of dairy products; and a reduction in the total amount of economic surplus in the dairy market
◦ a redistribution of income from dairy farmers to consumers of dairy products; and an increase in the total amount of economic surplus in the dairy market
◦ a redistribution of income from dairy farmers to consumers of dairy products; and a reduction in the total amount of economic surplus in the dairy market
◦ a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in the total amount of economic surplus in the dairy market
◦ a redistribution of income from consumers of dairy products to dairy farmers; and a reduction in deadweight loss in the dairy market
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