Suppose that the price floor is set above the world price, and that the world price is also above the European autarky price. In terms of surplus, removing the price floor would then be:

Question

Answer

beneficial for European consumers, harmful for EU authorities and European farmers

Answer

beneficial for EU authorities, harmful for European consumers and European farmers

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beneficial for EU authorities and European consumers, harmful for European farmers

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I don't know

Answer

beneficial for EU authorities and European farmers, harmful for European consumers

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Suppose that the price floor is set above the world price, and that the world pr...

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