1. "Subsidizing the price of milk or other agricultural products isn't very expensive considering how many consumers there are in the United States. So, there is little harmful effect from such subsidies." Compute this statement.
2. Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. Explain what impact do you suppose farm subsidies are likely to have on the following?
a. Housing prices
b. Technological change in the dairy industry
c. The price of dairy product substitutes