Problem
Case Study: The Market for Food and the "Farm Problem"
Again suppose that this diagram represents the market for agricultural products and that supply has increased from S0 to S1. To aid farmers, the federal government decides to stabilize the price at P0 by buying up surplus farm products. Show on the diagram how much this would cost the government. By how much would farm income change compared to what it would have been without government intervention?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.