37:57
You
are
viewing
Eshan
Sachin
Arya's
screen
O
RS
EUNRY
9
]
®
Recording
B
View
Situations
where
CS,
PS
and
TS
CS,
PS
and
TS
increase
when
D
decrease:
or/and
S
increase
1.
When
the
market
is
unable
to
reach
equilibrium
p
2.
When
S
decreases
3.
When
D
decreases
A
A
floor
set
below
the
equilibrium
is
called
a
non-
binding
floor.
This
policy
will
end
up
protecting
the
prices
-from
falling
and
hence
will
protect
the
local
producers.
The
market
is
allowed
and
hence
will
reach/get
back
to
'equilibrium.
|
Government
wants
to
protect
local
producers
of
milk
and
hence
the
government
imposes
a
minimum
selling
price on
all
milk
sellers.
Suppose
the
equilibrium
price
is
$2
pl,
the
b
new
minimum
price
set
by
the
government
is
$1.50
1%
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