There are different types of support available to producers such as farmers in both developed and developing countries. Often times, the intervention has political and social aims as welfare as economic objectives.
Support might include:
When analysing the effect of interventions in markets, remember to show clearly changes in market price and quantity demanded and supplied. Consider the impact of intervention on levels of consumer and producer surplus.
Some of the main aims of support include:
Evaluating the impact of producer support programmes
Develop your knowledge and understanding:
Quizlet revision activity on government intervention in markets
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