5. Keeping Chinas farmland area steady In order to ensure grain security and feed its huge population,

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5. Keeping China’s farmland area steady In order to ensure grain security and feed its huge population, the central government of China has put in great effort to keep the area of arable land not less than 120 million hectares in recent years, although promoting urban development.

Source: China Daily, December 13, 2012

a. If the central government of China allowed the area of farmland to shrink continuously, instead of keeping it steady, how will China’s farmland market change? Draw a graph to illustrate your answer.

b. Draw a graph to illustrate the effects of shrinking farmland area on the labor market for farm workers in China.

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Related Book For  book-img-for-question

Foundations Of Microeconomics

ISBN: 9780063076280

7th Global Edition

Authors: Bade, Robin;Parkin, Michael

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