1. MB = 100 Q. MC = 10. Assume this is a perfectly competitive market. What is equilibrium Q & P? If a tax of 10 per unit is charged to producers for every unit they produce what is new Q & P_consumer & P_producer? Who pays this tax?
2. According to the Government Accountability Office, the U.S. provides approximately $20 billion per year in agricultural subsidies. Select two of our Policy Process Framework from class and argue why these subsidies have been maintained despite a history of bipartisan criticism.