Answer:
Explained below
Explanation:
- A price support in the market for an agricultural product will increase the quantity that's produced and also decrease the quantity being consumed which will in turn create a surplus.
- Now, to maintain this support price, the government usually will buy the surplus and then subsidize the producer.
- This price support will be of great benefit to the producer but on the other hand it will cost the consumer/taxpayer more than the producer will profit thereby creating a deadweight loss.
- In summary, this price support can be said to be inefficient and is normally unfair.
