Question
Consider an economy where many farmers rear pigs to earn a living. Recently there is an outbreak of pig virus and consumers are concerned about
Consider an economy where many farmers rear pigs to earn a living. Recently there is an outbreak of pig virus and consumers are concerned about consuming pork. As such the sales of pork in the economy decreases sharply, resulting in a severe drop in the income for pig farmers. The government would like to take action to increase the consumption of pork to help the pig farmers and it is contemplating two options. One is to provide a subsidy to pig farmer and the other is to try to influence consumer tastes through an advertising campaign to highlight that pork is safe to consume.
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