Question

Identify the negative consequences of establishing a price floor on milk.

a. The milk aisle of a grocery storeIdentify the negative consequences of establishing a price floor on milk.
b. There will be a surplus of milk. Press Space to open Sellers will be tempted to engage in illegal activity to recoup some of their costs due to milk that went unsold.
c. There will be a decrease in the quantity of milk demanded.
d. Consumers will demand higher-quality milk as they are forced to pay more.

Answer 1

Answer:

Negative consequence: there will be surplus of milk. There will be a decrease in the quantity of milk demanded. And sellers will be tempted to engage in illegal activity to recoup some of their cost due to milk that went unsold.

Not negative consequence: consumers will demand higher - quilt milk as they forced to pay more.

Explanation: