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According to Bono, agricultural subsidies in the U.S. harm farmers in Africa. Why? What is exactly the welfare effect that is responsible for that outcome

  1. According to Bono, agricultural subsidies in the U.S. harm farmers in Africa. Why?

What is exactly the welfare effect that is responsible for that outcome according to Figure 1?

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Figure 1 U.S. Subsidies Reduce African Exports P S P* P* * - - - - I- PD - - ---/. - - - - - - D QD QD Q's Q Q U.S. farm subsidies reduce the world price of this crop from P* to P**. Exports from this African country fall from Qs-QD to Q's-Ob

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