1. Homework #3 Part 1 Econ 201 Fall 2010 Oct 26, 2010

2. Homework # 3 Cato Institute: Tax & Budget, Milk Madness –http://facweb.northseattle.edu/dperry/articles and papers/cato institue_price supports.pdfhttp://facweb.northseattle.edu/dperry/articles and papers/cato institue_price supports.pdf –Critically evaluate (agree/disagree and why) the author’s main points (no more than 1 page)

3. Analysis of Milk Tax Paper –How would you explain to a friend Chris Edward’s contentions about the effects of the following policies on the dairy market. First explain how each policy in isolation (ceteris paribus) would affect the dairy market and then how collectively all of the policies affect the market: Price support system Income support program Export subsidies program Import barriers –Then critically evaluate Edward’s conclusions. Do you agree or disagree? Why?