This paper aims to study the short term impact of a change in the level of the intervention price in the fruit market, consecutive to the E.U. reform of 1996. Taking the example of fresh apple, we consider a market for goods differentiated by quality. The equilibrium are determined as a function of an exogenous level of production, with and without government intervention. Contrary to a widespread belief, we show that government intervention affects the prices of the different qualities marketed, even if the intervention is directed only towards the low quality products. Then, the decrease in the intervention price dramatically affects producers sales on the whole.
