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In an effort to assist wheat-farmers, the government decides to subsidise the production of wheat, by giving wheat farmers an extra $10 per tonne produced

In an effort to assist wheat-farmers, the government decides to subsidise the production of wheat, by giving wheat farmers an extra $10 per tonne produced and sold. Describe, and show on an appropriate graph, what happens to the wheat market and farmers in (i) the short-run, and (ii) the long-run. Your answer should include discussions changes to prices and quantities, a complete welfare analysis, and anything else you feel is required. (iii) Would you recommend the government implement this policy? (Concerning this is perfect competitive market and diagrams are required)

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