1 Read the article in Reading Between the Lines on pp. 136137 about the proposed reforms to...
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1 Read the article in Reading Between the Lines on pp. 136–137 about the proposed reforms to the EU Common Agricultural Policy: a Explain how CAP uses a target price for beef to maintain EU farm incomes. b Food safety scares such as BSE and foot and mouth disease have decreased the demand for beef at the current target price. How will this change in demand affect farm revenues and government subsidies? Illustrate your answer. c Explain how cutting the link between production and subsidies will affect the efficiency of the Common Agricultural Policy?
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