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In the United States and Western Europe, farmers are strong enough politically to persuade their governments to set price floors for many crops. In many

In the United States and Western Europe, farmers are strong enough politically to persuade their governments to set price floors for many crops. In many less-developed countries, governments that are worried about the standard of living of their urban populations impose price ceilings on food staples like rice and wheat. Use supply and demand curves to show how these policies can help to explain the food surpluses in the rich countries and the shortages in the poor countries.

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