What will happen to the size of the deadweight loss if the


Problem

1. Suppose the United States maintains a price floor for spinach. Why might this policy decrease revenues for spinach farmers?

2. Suppose Colombia maintains a price floor for coffee beans. What will happen to the size of the deadweight loss if the price floor encourages new growers to enter the market and produce coffee?

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Microeconomics: What will happen to the size of the deadweight loss if the
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