Problem
a Explain, using supply and demand curves, how a low "buy price" (i.e. a price below market equilibrium) by government for a staple product, such as rice in India, may lead profit-oriented staple crop producers to switch to other crops.
b On the same graph, show the effect of targeted income subsidies to low income consumers on the quantity and price of rice traded in the market, assuming the "buy price" program is abandoned.
c Discuss the pros and cons of subsidized prices for staple commodities versus targeting income subsidies as strategies to help the poor to purchase staple food products.
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.