Question

Assume you are examining the country of Ireland. Assume Ireland is initially in equilibrium. What happens to Irish equilibrium when the Irish government decides to subsidize all Irish farmers so that more crops can be grown? Hint: examine this in the context of production only.

Answer 1

Answer: The central subsidy, the single farm payment, is paid by the hectare; the more land you have, the more money you receive.

Explanation: The U.S. government created farm subsidies during the Great Depression to offset the surplus of crops and low prices of both crops and livestock