How to raise equilibrium price?
By mark98
@mark98 (567)
China
February 21, 2011 1:29am CST
Can someone help me with this question?
If you were a government official that wanted to raise the equilibrium price of milk, which of the following actions would you take?
a. Take milk from government storage and sell it.
b. Encourage farmers to produce more milk.
c. Subsidize purchases of dairy equipment.
d. Fund research on how to make dairy cows produce more milk...
e. none of the above.
1 response
@veganbliss (3895)
• Adelaide, Australia
8 Mar 11
I don't know how it works in China, but if it were me, I'd put a great big input tax on dairy farmers & encourage them to undertake a more honest profession that benefits China, its people & the world. This increase on inputs would need to be passed onto the consumer & everyone would pay much more for milk which is detrimental to one's health, the environment & animal suffering. The proceeds from this tax could then be used to support these very farmers in growing or producing something like vegetables, fruits, grains, nuts & seeds. This would be very good for China, as she has been badly knocked about in recent times by some very eventful weather that many would argue has been a result of an increase in animal products consumption underlying global warming / climate change. I've shown the relationship between animal product consumption & global warming in many other discussions I've responded to, but I can list some of them here later if you so wish.
I guess there are many ways to raise milk prices, but it would have to be done in a way that is fair & acceptable to the people, especially those who already refrain from consuming it. It would also have to be done in such a way as to minimize ongoing costs to your government.