In the United States, price floors are commonly used to support farmers,
In the United States, price floors are commonly used to support farmers,
such as for dairy products. Assume several U.S. trading partners impose tariffs on dairy products exported from the United States. The tariffs are effective and are reducing dairy exports from the United States and have pushed the domestic equilibrium price of milk below the price floor.
what happens to the U.S. domestic price of milk, quantity of milk sold in the United States, and any surplus or shortage of milk