Question
Please explain and graph the solution to the question below: U.S. agricultural farmers are excited since the government announced an increase in subsidies even though
Please explain and graph the solution to the question below:
U.S. agricultural farmers are excited since the government announced an increase in subsidies even though the substitutes for agricultural goods that are imported have increased in demand; therefore, please illustrate by constructing a supply and demand graph, the direction in which the curves will shift and state the new equilibrium price and quantity; for example, state whether price and quantity increased, decreased, or are indeterminate. Please explain your rationale based on the determinants of demand and supply.
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