G. Issue: The Purchasing Power of the General Public

    This inquiry is also drawn directly from Section 9(e) of the
Compact. The Compact Commission concludes that the Compact focuses
primary concern on the consumer interest because milk is a staple
product. The impact of price regulation upon the consumer's ability to
pay is thus a critical part of the Compact Commission's assessment of
the public interest under this finding section.
    To sharpen inquiry under this broader issue, the Compact Commission
sought comment on a number of issues relating to the potential impact
of price regulation on consumers. These issues include: The elasticity
of demand for fluid milk products, the costs of retailing Class I,
fluid milk in the New England region, the prevailing retail prices for
Class I, fluid milk, inside and outside the New England region, the
cost of retailing fluid milk products, and the potential impact of a
flat, combined regulated, Federal Order and Compact Over-Order price on
the retail market for fluid milk products.\83\
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    \83\ See 61 CFR 65604; 62 CFR 12252.
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    The Compact Commission also focused specific attention on the
potential impact of price regulation on lower income consumers.
Specifically, the Commission sought comment on the potential impact of
a flat, combined, regulated, Federal Order and Compact Over-Order price
on the Women, Infants and Children Special Supplemental Nutrition
Program of the United States Child Nutrition Act of 1966, and the
impact of such a price on the school lunch program.\84\
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    \84\ See 61 CFR 65604; 62 CFR 12252.
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    Each of these issues is addressed in turn.