Answer to Question #56320 in Macroeconomics for keshav

Question

U.S. Government price supporters for milk led to an increasing surplus of milk. In an effort to reduce the surplus about a decade ago, congress offered to pay diary farmers to slaughter cows. Use two diagrams, one for the milk market and one for the meat market, to illustrate how this policy should have affected the price of meat. ( Assume that meat is sold in an unregulated market)