Web Links

• p.86: Go to http://www.tenant.net/ to learn more about New York City's rent controls from Tenant.net.
• p.89: Go to http://www.dol.gov/esa/whd/flsa/ for information from the U.S. Department of Labor on recent developments concerning the federal minimum wage.

Issues and Applications Web Resources:

• To learn more about how the Port of Los Angeles establishes prices for the use of space and various port facilities, go to http://www.portoflosangeles.org/index.htm.
• For a comparative look at the rules governing pricing access to the Port of Miami, go to http://www.co.miami-dade.fl.us/portofmiami/tariff.asp.

The Floor on Milk Prices
At various times the U.S. government has established price floors for milk. This application gives you an opportunity to apply what you have learned in this chapter to a real-world issue.

     Title: Northeast Dairy Compact Commission

     Navigation: Go to http://www.dairycompact.org/ to visit the Web site of the Northeast Dairy Compact Commission.

Application
Read the contents and answer these questions.

1. Based on the government-set price control concepts discussed in Chapter 4, explain the Northeast Dairy Compact that was once in place in the northeastern United States.

2. Draw a diagram illustrating the supply of and demand for milk in the Northeast Dairy Compact and of the supply of and demand for milk outside of the Northeast Dairy Compact. Illustrate how the compact affected the quantities demanded and supplied for participants in the compact. In addition, show how this affected the market for milk produced by those producers outside the dairy compact.

3. Economists have found that while the Northeast Dairy Compact functioned, midwestern dairy farmers lost their dominance of milk production and sales. In light of your answer to Question 2, explain how this occurred.