The Figure Below Shows the Demand (D) and Supply (S)

question 42

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of corn syrups.Figure 21.3

-Suppose, in the United States, each farmer is given a federal agricultural subsidy worth $30,000. What will be the effect of such subsidy?

• A)It discourages domestic agricultural production.
• B)It allows U.S. farmers to sell their products for lower prices in foreign markets.
• C)It gives foreign producers an unfair cost advantage.
• D)It increases the amount of agricultural imports into the United States.
• E)It reduces the prices of the primary products in the U.S. market.