A. If closer to W: subsidize to lower the price down. Ice cream cheaper in W and at its original price further away
B. If further to W: tax to inflate the prices. Ice cream is at its original price in W and more expansive further away
I cannot see how you could have subsidies AND inflated prices at the same time. Maybe A and B are used simultaneously? More clarification would be appreciated :)
So yes, as counterintuitive as it sounds, milk is both subsidized and sold at inflated prices
https://www.farmlinkproject.org/stories-and-features/cheese-...
> Though demand is declining, production is not. It has risen 13% since 2010. In 2016, the American dairy industry dumped a whopping 43 million gallons of milk
> The dairy industry received 43 billion and 36.3 billion dollars in 2016 and 2017, respectively, from the federal government.
> It is important that special interests do not acquire billions annually for an industry that knowingly overproduces, not to mention pollutes the environment, in the face of declining consumption