1. How do farm subsidies affect consumers? Explain. Do farm subsidies impact low-income households differently than high-income households? Explain.
2. How do farm subsidies affect farmers? Explain. Which farmers benefit the most from farm subsidies? Explain.
3. Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on the following? a.Housing prices b.Technological change in the dairy industry c.The price of dairy product substitutes