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Agriculture Economics
Introduction to the Agriculture Economics
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Concept Version 6
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Price Supports

Subsidies and Supply

Subsidies and Supply

This chart shows how subsidies and price controls affect supply and demand. A subsidy, as illustrated here, will reduce the price and extend the overall supply demanded and consumed by individuals within the system. This is the most relevant chart to agricultural economics specifically.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    Wikimedia.
    http://upload.wikimedia.org/wikipedia/commons/9/9e/Subsidy-_visualization.jpg CC BY-SA.

Related Terms

  • Price support
  • Subsidies
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