Principles of Microeconomics / Unit 2 MIC 0126 short lesson, about 20 seconds
Agricultural Price Supports
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The idea
A price support holds a crop's price above equilibrium. Farmers grow more, buyers take less, and the government buys the surplus or pays farmers to leave land idle.
In practice
Stored grain, school-lunch donations and acreage limits are all ways to absorb the surplus.
Where people slip
Consumers pay twice: a higher price at the store, and taxes to fund the purchase.
Your place on the trail
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